JetBlue Airways Corp (JBLU)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -545,000 | -654,000 | -798,000 | -630,000 | -137,000 | -40,000 | 237,000 | -140,000 | -280,000 | -488,000 | -640,000 | -740,000 | -667,000 | -967,000 | -1,493,000 | -1,687,000 | -1,727,000 | -1,033,000 | -260,000 | 405,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,641,000 | 2,644,000 | 2,697,000 | 2,633,000 | 3,337,000 | 3,420,000 | 3,554,000 | 3,373,000 | 3,563,000 | 3,507,000 | 3,446,000 | 3,598,000 | 3,849,000 | 3,949,000 | 3,813,000 | 3,714,000 | 3,943,000 | 3,717,000 | 4,094,000 | 4,366,000 |
| Return on total capital | -20.64% | -24.74% | -29.59% | -23.93% | -4.11% | -1.17% | 6.67% | -4.15% | -7.86% | -13.92% | -18.57% | -20.57% | -17.33% | -24.49% | -39.16% | -45.42% | -43.80% | -27.79% | -6.35% | 9.28% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-545,000K ÷ ($—K + $2,641,000K)
= -20.64%
JetBlue Airways Corp's return on total capital has displayed fluctuations over the past few years. Starting at a positive level of 9.28% on March 31, 2020, the return on total capital turned negative in the subsequent periods. The trend continued to decline significantly, reaching its lowest point of -45.42% on March 31, 2021. Although there was some improvement in the following quarters, the return on total capital remained negative until June 30, 2023, when it turned positive again at 6.67%. However, the positive trend was short-lived as the return on total capital fell back into negative territory at -4.11% on December 31, 2023. As of December 31, 2024, the return on total capital stood at -20.64%.
The negative values signify that JetBlue Airways Corp's total capital is generating returns below the cost of capital, indicating inefficiency in capital utilization. It suggests that the company may be facing challenges in generating sufficient profits from its capital investments to cover financing costs. This analysis highlights the importance for JetBlue Airways Corp to enhance its operational efficiency and strategic decision-making to improve its return on total capital and overall financial performance.
Peer comparison
Dec 31, 2024