JetBlue Airways Corp (JBLU)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -230,000 | -298,000 | -80,000 | -1,714,000 | 800,000 |
| Long-term debt | US$ in thousands | — | 2,848,000 | 3,982,000 | 4,930,000 | 2,367,000 |
| Total stockholders’ equity | US$ in thousands | 3,337,000 | 3,563,000 | 3,849,000 | 3,951,000 | 4,799,000 |
| Return on total capital | -6.89% | -4.65% | -1.02% | -19.30% | 11.16% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-230,000K ÷ ($—K + $3,337,000K)
= -6.89%
Jetblue Airways Corp's return on total capital has fluctuated significantly over the past five years. In 2019, the company achieved a return on total capital of 11.41%, indicating a solid profitability and efficiency in utilizing its total capital resources. However, in the following years, Jetblue experienced decreasing returns, with negative figures in 2020, 2021, and 2022, reaching a low of -22.66% in 2020. This suggests operational challenges or inefficiencies that impacted the company's ability to generate returns on its total capital.
The negative returns indicate that Jetblue's total capital was not effectively utilized to generate profits during those years. The most recent data for 2023 shows a slight improvement but still remains in negative territory at -0.41%. Jetblue may need to assess its capital allocation strategies, operational efficiencies, and cost management to enhance its overall return on total capital in the future.
Peer comparison
Dec 31, 2023