Tegna Inc (TGNA)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 786,624 | 666,046 | 599,300 | 621,224 | 659,597 | 838,260 | 906,162 | 966,973 | 1,007,182 | 895,589 | 874,577 | 849,419 | 833,062 | 1,011,938 | 1,023,708 | 915,974 | 893,977 | 693,137 | 593,005 | 644,975 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,004,710 | 2,871,370 | 2,801,100 | 2,797,890 | 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 |
| Return on total capital | 26.18% | 23.20% | 21.40% | 22.20% | 24.39% | 28.31% | 31.20% | 30.69% | 32.79% | 31.12% | 31.90% | 32.43% | 33.06% | 41.82% | 45.32% | 42.82% | 43.44% | 38.52% | 35.40% | 38.89% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $786,624K ÷ ($—K + $3,004,710K)
= 26.18%
Tegna Inc's return on total capital has fluctuated over the period from March 31, 2020, to December 31, 2024. The return on total capital started at a high of 38.89% in March 2020, showing strong performance in utilizing its total capital efficiently.
The ratio remained relatively high in subsequent quarters, reaching a peak of 45.32% in June 2021. However, it began to decline gradually from that point onwards. By December 31, 2024, the return on total capital had decreased to 26.18%, indicating a significant drop compared to previous periods.
The declining trend in the return on total capital suggests that Tegna Inc may be facing challenges in generating returns from its total capital investment. It is important for the company to analyze the factors contributing to this decline and take necessary steps to improve the efficiency of capital utilization to enhance its overall financial performance.
Peer comparison
Dec 31, 2024