Sun Country Airlines Holdings Inc (SNCY)

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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	136,794	135,170	134,122	98,332	55,001	44,478	45,860	111,513	125,837
Long-term debt	US$ in thousands	327,468	351,766	365,211	346,065	294,687	324,662	319,733	242,544	248,014	266,985	267,684	274,109
Total stockholders’ equity	US$ in thousands	514,403	519,361	540,765	521,007	492,712	508,005	495,888	497,069	490,589	487,142	469,019	414,322
Return on total capital		16.25%	15.52%	14.80%	11.34%	6.99%	5.34%	5.62%	15.08%	17.04%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $136,794K ÷ ($327,468K + $514,403K)
= 16.25%

The return on total capital for Sun Country Airlines Holdings Inc has shown a positive trend over the past eight quarters, starting at 5.08% in Q4 2022 and gradually increasing to 10.68% in Q4 2023. This indicates an improvement in the company's ability to generate profits from its total capital employed in its operations.

The consistency in the increasing trend suggests effective capital utilization and operational efficiency by the company. The higher returns reflect potentially better financial performance and efficiency in generating profits compared to the earlier periods.

Overall, the progressive improvement in return on total capital for Sun Country Airlines Holdings Inc signals positive growth and a favorable utilization of capital resources, potentially reflecting a stronger financial position and operational effectiveness.