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.