SkyWest Inc (SKYW)
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 | 546,483 | 171,239 | 219,666 | 273,732 | 115,846 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,408,780 | 2,113,500 | 2,347,630 | 2,267,510 | 2,139,540 |
| Return on total capital | 22.69% | 8.10% | 9.36% | 12.07% | 5.41% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $546,483K ÷ ($—K + $2,408,780K)
= 22.69%
The return on total capital for SkyWest Inc has shown significant fluctuations over the years based on the provided data. In December 2020, the return on total capital was relatively low at 2.20%, indicating that the company was not efficiently generating returns from its total capital.
By December 2021, there was a noticeable improvement in the return on total capital, reaching 5.53%. This suggests that the company was able to enhance its operational efficiency and generate higher returns from its total capital investments.
However, in December 2022, there was a slight decline in the return on total capital to 3.43%, indicating a decrease in the company's ability to generate profits relative to its overall capital base.
The following year, in December 2023, the return on total capital further dropped to 2.23%, reflecting ongoing challenges in efficiently utilizing the company's total capital to generate returns.
By December 2024, there was a significant upturn in the return on total capital to 10.88%, demonstrating a remarkable improvement in the company's performance in efficiently leveraging its capital investments to generate higher returns.
Overall, the return on total capital for SkyWest Inc has exhibited variability, implying fluctuations in the company's efficiency in generating returns from its total capital base over the years. It would be important for stakeholders to monitor this metric closely to assess the company's financial performance and capital utilization strategies.
Peer comparison
Dec 31, 2024