Viad Corp (VVI)

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	82,794	68,084	-66,119	-341,961	38,740
Long-term debt	US$ in thousands	349,800	301,800	328,900	254,000	304,000
Total stockholders’ equity	US$ in thousands	43,433	14,530	6,282	95,955	467,498
Return on total capital		21.05%	21.52%	-19.73%	-97.72%	5.02%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $82,794K ÷ ($349,800K + $43,433K)
= 21.05%

Viad Corp.'s return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital improved significantly to 15.02%, indicating that the company generated a return of 15.02% on its total invested capital during the year. This is a positive sign of the company's ability to efficiently use its capital to generate profits.

In the previous year, 2022, the return on total capital was 9.01%, which also indicates a decent performance in utilizing the total capital. However, in 2021, the return on total capital was negative at -9.80%, suggesting that the company incurred losses on its total invested capital during that year.

The performance in 2020 was even worse with a return on total capital of -24.09%, indicating significant losses relative to the invested capital. The situation improved in 2019 with a positive return on total capital of 9.81%.

Overall, the company has experienced fluctuations in its return on total capital, with improvements seen in recent years after facing negative returns in 2021 and 2020. Investors and stakeholders may observe these trends to assess Viad Corp.'s ability to effectively deploy its capital and generate returns.