TKO Group Holdings, Inc. (TKO)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 283,479 | 247,161 | 202,548 | 32,595 | 298,776 | 339,165 | 304,786 | 288,078 | 325,243 | 307,913 | 313,087 | 290,376 | 262,702 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,091,020 | 4,044,560 | 3,991,620 | 4,034,780 | 4,108,980 | 4,164,900 | 586,924 | 561,234 | 568,916 | 471,236 | 440,832 | 401,444 | 374,660 |
| Return on total capital | 6.93% | 6.11% | 5.07% | 0.81% | 7.27% | 8.14% | 51.93% | 51.33% | 57.17% | 65.34% | 71.02% | 72.33% | 70.12% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $283,479K ÷ ($—K + $4,091,020K)
= 6.93%
TKO Group Holdings, Inc.'s return on total capital has exhibited a declining trend over the analyzed period from December 31, 2021, to December 31, 2024. The return on total capital started at a high of 70.12% in December 2021, showing a strong initial performance. However, it gradually decreased to 6.93% by December 31, 2024.
The decline in return on total capital indicates a decrease in the company's ability to generate profits relative to the total capital employed in its operations. This could be a concerning trend as it may suggest inefficiencies in the utilization of capital or a decrease in profitability.
It is important for TKO Group Holdings, Inc. to closely examine the factors contributing to this decline in return on total capital and take appropriate measures to improve efficiency, profitability, and overall performance in order to enhance investor confidence and ensure sustainable growth in the future.
Peer comparison
Dec 31, 2024