Travel + Leisure Co (TNL)
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 | 741,000 | 682,000 | 622,000 | -86,000 | 860,000 |
| Long-term debt | US$ in thousands | — | — | — | — | 5,575,000 |
| Total stockholders’ equity | US$ in thousands | -918,000 | -913,000 | -801,000 | -975,000 | -530,000 |
| Return on total capital | — | — | — | — | 17.05% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $741,000K ÷ ($—K + $-918,000K)
= —
Travel+Leisure Co's return on total capital has shown a generally positive trend over the past five years. The company achieved a return on total capital of 15.82% in 2023, which is an improvement compared to the previous year where it was 14.36%. This indicates that the company is generating more income relative to the total capital employed in the business.
In 2021, the return on total capital was 13.65%, which was also higher than the return in 2020 at 1.36%. This significant improvement suggests that the company may have implemented strategies to enhance efficiency and profitability during that period.
Notably, in 2019, Travel+Leisure Co recorded a return on total capital of 16.35%, which was higher than the most recent figure in 2023. However, it is important to consider the overall positive trend in the return on total capital over the five-year period, indicating the company's ability to generate returns from its total invested capital.
Overall, the increasing trend in return on total capital for Travel+Leisure Co suggests that the company has been effectively utilizing its capital to generate profits and create value for its shareholders.
Peer comparison
Dec 31, 2023