JetBlue Airways Corp (JBLU)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -547,000 | -124,000 | -271,000 | -88,000 | -1,727,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,641,000 | 3,337,000 | 3,563,000 | 3,849,000 | 3,943,000 |
| Return on total capital | -20.71% | -3.72% | -7.61% | -2.29% | -43.80% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-547,000K ÷ ($—K + $2,641,000K)
= -20.71%
Based on the provided data, JetBlue Airways Corp's return on total capital has shown a fluctuating trend over the years. In 2020, the return on total capital was notably negative at -43.80%, indicating that the company did not generate sufficient returns relative to its total capital employed. However, there was an improvement in 2021 with a less negative return of -2.29%, suggesting a slight recovery.
In 2022, the return on total capital decreased again to -7.61%, signaling a decline in the utilization of capital to generate profits. The following year, in 2023, there was a further decrease to -3.72%, indicating ongoing challenges in capital efficiency.
By the end of 2024, the return on total capital deteriorated significantly to -20.71%, marking a substantial decline compared to the previous year. Overall, the negative returns on total capital over these years highlight the struggles JetBlue Airways Corp has faced in generating sufficient profits relative to the capital invested in the business. Further analysis of the company's financial performance and operational strategies would be necessary to address this issue and improve profitability.
Peer comparison
Dec 31, 2024