EchoStar Corporation (SATS)

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	-277,909	189,644	217,010	112,473	208,587
Long-term debt	US$ in thousands	17,843,600	18,752,200	1,495,990	1,495,260	2,389,170
Total stockholders’ equity	US$ in thousands	19,880,200	21,487,600	3,353,830	3,542,330	3,669,800
Return on total capital		-0.74%	0.47%	4.47%	2.23%	3.44%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-277,909K ÷ ($17,843,600K + $19,880,200K)
= -0.74%

EchoStar Corporation's return on total capital has exhibited fluctuations over the past five years. The return on total capital was negative at -0.74% as of December 31, 2023, indicating that the company's operating profitability did not cover the total capital employed during that period. This represents a decline from the prior year when the return on total capital was 0.47%.

In 2021, EchoStar's return on total capital improved significantly to 4.47%, demonstrating a stronger ability to generate profits relative to the total capital invested in the business. However, this level of performance was not sustained in 2022 and 2023, as the return on total capital decreased to 2.23% and -0.74%, respectively.

The trend of EchoStar's return on total capital suggests variability in the company's efficiency in utilizing its total capital to generate profits over the years. Further analysis of the company's operational and financial performance may be necessary to understand the factors contributing to these fluctuations and to assess the sustainability of its returns in the future.