Addus HomeCare Corporation (ADUS)

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	92,432	84,869	79,049	74,221	69,078	67,708	67,506	67,583	66,204	58,432	53,645	46,328	45,131	48,324	43,261	40,985	35,701	27,125	25,406	24,599
Long-term debt	US$ in thousands	124,132	163,917	78,702	108,487	131,772	163,557	196,342	256,127	220,912	220,707	193,714	193,839	193,901	59,561	59,048	59,112	59,164	59,248	36,231	17,375
Total stockholders’ equity	US$ in thousands	706,694	684,334	666,351	648,886	633,540	614,837	599,777	585,778	574,344	558,051	544,055	529,910	518,676	507,600	494,861	486,808	475,592	462,199	281,507	274,020
Return on total capital		11.13%	10.01%	10.61%	9.80%	9.03%	8.70%	8.48%	8.03%	8.32%	7.50%	7.27%	6.40%	6.33%	8.52%	7.81%	7.51%	6.68%	5.20%	8.00%	8.44%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $92,432K ÷ ($124,132K + $706,694K)
= 11.13%

Addus HomeCare Corporation's return on total capital has shown a consistent upward trend over the past eight quarters, from 7.99% in Q1 2022 to 10.95% in Q4 2023. This indicates that the company is becoming more efficient in generating profits from the total capital employed in its operations. The gradual improvement in return on total capital reflects positively on the company's ability to utilize its resources effectively and create value for shareholders. Additionally, the increasing trend suggests that Addus HomeCare Corporation's management is making effective decisions in capital allocation and operational efficiency, which bodes well for the company's financial health and long-term sustainability.