EchoStar Corporation (SATS)

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	-557,192	-1,845,280	3,414,520	223,859	120,092
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	20,191,400	19,880,200	3,502,620	3,353,830	3,542,330
Return on total capital		-2.76%	-9.28%	97.48%	6.67%	3.39%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-557,192K ÷ ($—K + $20,191,400K)
= -2.76%

EchoStar Corporation's return on total capital has shown a fluctuating trend over the years based on the provided data.

- In December 31, 2020, the return on total capital was 3.39%, indicating a relatively low profitability in that particular year.
- The ratio improved in December 31, 2021, reaching 6.67%, suggesting an increase in the company's ability to generate profits relative to its total capital employed.
- A significant surge was noted in December 31, 2022, with a return on total capital of 97.48%, reflecting a substantial improvement in profitability and operational efficiency.
- However, a sharp decline was observed in December 31, 2023, where the return on total capital fell to -9.28%, indicating a negative return on the capital employed during that year.
- The downward trend continued into December 31, 2024, with a further reduction in the return on total capital to -2.76%, signaling ongoing challenges in generating profits relative to the total capital invested.

Overall, the company's return on total capital has been volatile, with periods of improvement followed by deterioration. It is essential for EchoStar Corporation to focus on effectively managing its capital allocation and operational efficiency to ensure sustained profitability and value creation for its stakeholders.