Sun Country Airlines Holdings Inc (SNCY)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 136,793 | 55,000 | 126,656 |
| Long-term debt | US$ in thousands | 327,468 | 294,687 | 248,014 |
| Total stockholders’ equity | US$ in thousands | 514,403 | 492,712 | 490,589 |
| Return on total capital | 16.25% | 6.99% | 17.15% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $136,793K ÷ ($327,468K + $514,403K)
= 16.25%
Sun Country Airlines Holdings Inc's return on total capital has shown a positive trend over the past three years. The return on total capital increased from 4.35% in 2021 to 5.08% in 2022, and further improved to 10.68% in 2023. This indicates that the company has been effectively utilizing its capital to generate profits and create value for its shareholders. The significant improvement in 2023 suggests that Sun Country Airlines Holdings Inc's investment efficiency has strengthened, potentially due to better operational performance or strategic decisions. Overall, the increasing trend in return on total capital reflects positively on the company's financial management and operational effectiveness.
Peer comparison
Dec 31, 2023