SkyWest Inc (SKYW)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	104,069	41,383	67,668	124,410	181,162	249,178	220,652	247,073	275,867	215,246	242,749	123,323	108,802	261,776	333,664	482,160	512,258	475,128	455,365	449,197
Long-term debt	US$ in thousands	2,562,180	2,633,710	2,743,800	2,855,520	2,941,770	2,982,030	2,864,480	2,791,270	2,717,420	2,605,060	2,652,260	2,748,720	2,801,540	2,707,770	2,664,120	2,537,610	2,628,990	2,622,240	2,719,040	2,734,320
Total stockholders’ equity	US$ in thousands	2,113,500	2,136,700	2,157,240	2,232,060	2,347,630	2,395,950	2,345,030	2,289,720	2,267,510	2,261,810	2,248,900	2,181,520	2,139,540	2,185,100	2,142,960	2,163,440	2,175,010	2,116,260	2,052,240	2,000,570
Return on total capital		2.23%	0.87%	1.38%	2.45%	3.43%	4.63%	4.24%	4.86%	5.53%	4.42%	4.95%	2.50%	2.20%	5.35%	6.94%	10.26%	10.66%	10.03%	9.54%	9.49%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $104,069K ÷ ($2,562,180K + $2,113,500K)
= 2.23%

Return on total capital is a key financial ratio that indicates the profitability of a company in relation to the total capital employed. Skywest Inc.'s return on total capital has shown fluctuation over the past eight quarters. In Q4 2023, the return on total capital was 2.03%, which increased from the previous quarter's 0.79%. However, it remains lower compared to Q4 2022, when it stood at 3.16%.

The return on total capital for Skywest Inc. peaked in Q3 2022 at 4.29% and has since shown a downward trend. Although there was a slight improvement in Q4 2023, the company's return on total capital remains lower compared to the previous year's quarters.

Overall, Skywest Inc. needs to closely monitor and manage its capital utilization and profitability to ensure a consistent and healthy return on total capital in the future.