New York Times Company (NYT)
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 | 276,272 | 201,967 | 268,034 | 176,256 | 175,582 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,763,220 | 1,597,970 | 1,538,720 | 1,325,520 | 1,172,000 |
| Return on total capital | 15.67% | 12.64% | 17.42% | 13.30% | 14.98% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $276,272K ÷ ($—K + $1,763,220K)
= 15.67%
New York Times Co.'s return on total capital has exhibited variability over the past five years, ranging from 13.30% in 2020 to 17.67% in 2021. The return on total capital for the most recent year, as of December 31, 2023, stands at 16.50%. This metric indicates the company's ability to generate profits from the total capital employed in its operations.
A return on total capital above 15% is generally considered strong and reflects efficient utilization of both debt and equity to generate earnings. New York Times Co.'s performance in this regard has been relatively stable, with the metric consistently above this benchmark over the past five years.
The trend of maintaining return on total capital above 15% indicates that New York Times Co. has been effectively managing its capital structure and assets to generate value for its investors. However, further analysis in conjunction with other financial metrics would be necessary to provide a more holistic assessment of the company's overall financial health and performance.
Peer comparison
Dec 31, 2023