Sun Country Airlines Holdings Inc (SNCY)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 105,986 | 136,793 | 55,000 | 126,656 |
| Long-term debt | US$ in thousands | 239,543 | 327,468 | 294,687 | 248,014 |
| Total stockholders’ equity | US$ in thousands | 570,373 | 514,403 | 492,712 | 490,589 |
| Return on total capital | 13.09% | 16.25% | 6.99% | 17.15% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $105,986K ÷ ($239,543K + $570,373K)
= 13.09%
Based on the data provided, Sun Country Airlines Holdings Inc's return on total capital has fluctuated over the four-year period from December 31, 2021, to December 31, 2024.
In December 31, 2021, the return on total capital was 17.15%, indicating that the company generated a positive return on its total capital employed during that period. However, by December 31, 2022, the return on total capital decreased significantly to 6.99%, suggesting a lower efficiency in generating returns compared to the previous year.
The company's performance improved in December 31, 2023, with a return on total capital of 16.25%, indicating a recovery in the utilization of its capital to generate returns. Nevertheless, by December 31, 2024, the return on total capital dropped to 13.09%, reflecting a decrease in the company's efficiency in utilizing its capital effectively to generate profits.
Overall, Sun Country Airlines Holdings Inc's return on total capital experienced fluctuations during the four-year period, showing both positive and negative trends in capital efficiency and profitability. Further analysis would be needed to understand the factors impacting these variations and to determine strategies for enhancing the company's return on total capital in the future.
Peer comparison
Dec 31, 2024