Saia Inc (SAIA)
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 | 484,938 | 468,762 | 470,659 | 335,985 | 181,455 |
| Long-term debt | US$ in thousands | 6,300 | 16,100 | 31,200 | 50,800 | 71,200 |
| Total stockholders’ equity | US$ in thousands | 2,311,270 | 1,941,490 | 1,579,340 | 1,220,330 | 961,288 |
| Return on total capital | 20.92% | 23.95% | 29.22% | 26.43% | 17.57% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $484,938K ÷ ($6,300K + $2,311,270K)
= 20.92%
Saia Inc's return on total capital has shown a positive trend over the past five years, starting at 17.57% on December 31, 2020, and steadily increasing to 26.43% by December 31, 2021, 29.22% by December 31, 2022. However, there was a slight decline to 23.95% by December 31, 2023, before recovering to 20.92% by December 31, 2024.
This indicates that Saia Inc has been effectively utilizing its capital to generate returns for its shareholders, with a notable peak in 2022. The company's ability to maintain a return on total capital above 20% demonstrates its efficiency in deploying capital to generate profits. However, the slight decline in 2023 may suggest some challenges or changes in the company's operations during that period.
Overall, the increasing trend in return on total capital reflects positively on Saia Inc's financial performance and capital management strategies, although it is essential for the company to monitor and address any fluctuations to ensure long-term sustainable growth.
Peer comparison
Dec 31, 2024