Tegna Inc (TGNA)

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 779,827 965,961 1,031,857 963,297 1,006,861 881,960 860,289 825,962 798,086 969,024 983,479 877,688 847,365 649,855 529,652 602,382 581,127 653,441 706,728 724,938
Long-term debt US$ in thousands 3,072,800 3,071,900 3,071,030 3,070,160 3,069,320 3,068,450 3,067,610 3,066,780 3,231,970 3,336,880 3,455,980 3,517,090 3,553,220 3,906,200 4,098,080 4,071,900 4,179,240 4,180,940 2,953,570 2,891,500
Total stockholders’ equity US$ in thousands 2,704,870 2,960,540 2,904,160 3,151,260 3,071,720 2,878,260 2,741,720 2,618,850 2,519,910 2,419,710 2,258,960 2,139,340 2,058,100 1,799,540 1,675,310 1,658,260 1,590,380 1,521,700 1,479,740 1,405,250
Return on total capital 13.50% 16.01% 17.27% 15.48% 16.40% 14.83% 14.81% 14.53% 13.88% 16.83% 17.21% 15.52% 15.10% 11.39% 9.17% 10.51% 10.07% 11.46% 15.94% 16.87%

December 31, 2023 calculation

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

To analyze TEGNA Inc's return on total capital, we observe the trend in the return on total capital ratio across different quarters. The return on total capital measures the company's ability to generate profits from its total invested capital, including both equity and debt.

Looking at the data provided, we can see that the return on total capital has shown a fluctuating trend over the past eight quarters. The ratio peaked at 16.05% in Q4 2022 and has since shown a gradual decline, reaching 10.39% in Q4 2023. Despite the recent decrease, the return on total capital has generally remained above 10% over the period, indicating that TEGNA Inc has been effectively utilizing its total capital to generate returns for its investors.

It is important for investors and analysts to monitor the return on total capital as it reflects the company's efficiency in deploying its capital to generate profits. A consistent and healthy return on total capital indicates that the company is making effective use of its resources to create value for shareholders. However, any significant downward trend in this ratio may warrant further investigation into the factors impacting the company's profitability and capital allocation strategies.