Nexstar Broadcasting Group Inc (NXST)

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	708,000	1,312,100	1,175,400	1,375,400	655,131
Long-term debt	US$ in thousands	6,713,000	6,827,000	7,367,900	7,646,570	8,383,280
Total stockholders’ equity	US$ in thousands	2,299,000	2,741,000	2,850,400	2,518,390	2,031,500
Return on total capital		7.86%	13.71%	11.50%	13.53%	6.29%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $708,000K ÷ ($6,713,000K + $2,299,000K)
= 7.86%

Nexstar Media Group Inc's return on total capital has shown some variability over the past five years. In 2023, the return on total capital was 9.27%, which was a decrease from the previous year's 16.46%. This decrease suggests that the company may have been less efficient in generating profits from its total invested capital in 2023 compared to 2022. However, looking at a longer-term trend, the return on total capital has generally been above 10% over the past five years, indicating that the company has been able to effectively utilize its capital to generate returns for its investors. It is important for investors to monitor this ratio to assess the company's ability to generate profit relative to the total capital it has employed in its operations.