Acadia Healthcare Company Inc (ACHC)

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 -27,016 -18,915 365,809 378,418 371,541 381,548 369,912 325,960 264,480 -597,493 -634,648 -648,071 -532,789 375,630 475,084 582,729 585,883 575,434 577,720 583,848
Long-term debt US$ in thousands 1,342,550 1,349,950 1,372,360 1,399,780 1,364,540 1,379,310 1,384,070 1,463,850 1,478,630 1,413,410 1,443,190 1,484,210 2,968,950 3,067,240 3,078,440 2,944,820 3,105,420 3,133,640 3,206,870 3,221,710
Total stockholders’ equity US$ in thousands 2,781,970 2,712,560 2,921,020 2,839,600 2,812,730 2,743,710 2,663,040 2,574,510 2,517,490 2,434,450 2,356,590 2,298,000 1,899,460 2,606,640 2,503,340 2,464,170 2,505,380 2,420,690 2,422,350 2,403,340
Return on total capital -0.66% -0.47% 8.52% 8.93% 8.89% 9.25% 9.14% 8.07% 6.62% -15.53% -16.70% -17.13% -10.94% 6.62% 8.51% 10.77% 10.44% 10.36% 10.26% 10.38%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-27,016K ÷ ($1,342,550K + $2,781,970K)
= -0.66%

Acadia Healthcare Company Inc's return on total capital has shown a positive trend over the past eight quarters. The return on total capital has consistently increased from 10.04% in Q1 2022 to 12.19% in Q4 2023. This indicates that the company is efficiently generating returns from its total invested capital, which includes both debt and equity.

The gradual improvement in return on total capital demonstrates the company's ability to effectively utilize its resources to generate profits for its stakeholders. Investors and analysts may view this trend positively as it suggests that Acadia Healthcare Company Inc is becoming more efficient in generating returns on the capital it has employed in its operations.