Tegna Inc (TGNA)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	779,827	1,006,860	798,086	847,365	581,127
Long-term debt	US$ in thousands	3,072,800	3,069,320	3,231,970	3,553,220	4,179,240
Total stockholders’ equity	US$ in thousands	2,704,870	3,071,720	2,519,910	2,058,100	1,590,380
Return on total capital		13.50%	16.40%	13.88%	15.10%	10.07%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $779,827K ÷ ($3,072,800K + $2,704,870K)
= 13.50%

The return on total capital for TEGNA Inc has fluctuated over the past five years, with a range between 9.77% and 16.05%. In 2023, the return on total capital decreased to 10.39% from 16.05% in 2022, indicating a decline in the company's efficiency in generating returns relative to the total capital invested. It is important to note that a higher return on total capital signifies that the company is effectively utilizing its capital to generate profits. However, the downward trend in the return on total capital over the past two years may raise concerns about TEGNA Inc's ability to maintain or improve its profitability and efficiency in the utilization of capital in the future. Further analysis of the company's financial performance and operational efficiency may provide insights into the underlying factors impacting these ratios.