Addus HomeCare Corporation (ADUS)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	102,691	92,432	69,078	66,204	45,131
Long-term debt	US$ in thousands	218,443	124,132	131,772	220,912	193,901
Total stockholders’ equity	US$ in thousands	970,492	706,694	633,540	574,344	518,676
Return on total capital		8.64%	11.13%	9.03%	8.32%	6.33%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $102,691K ÷ ($218,443K + $970,492K)
= 8.64%

The return on total capital for Addus HomeCare Corporation has shown a positive trend over the years, increasing from 6.33% as of December 31, 2020, to 8.64% as of December 31, 2024. This indicates that the company has become more efficient in generating profits from its total capital employed during this period.

The highest return on total capital was recorded at 11.13% as of December 31, 2023, suggesting a strong performance in utilizing its invested capital to generate returns for the shareholders.

Overall, the upward trajectory of the return on total capital reflects positively on the company's financial management and operational efficiency in creating value for its stakeholders. This trend indicates potential growth opportunities and the ability of Addus HomeCare Corporation to generate favorable returns on its total capital base.