Adapthealth Corp (AHCO)

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	-597,596	203,499	284,176	-132,157	18,702
Long-term debt	US$ in thousands	2,094,610	2,153,270	2,183,550	776,568	395,112
Total stockholders’ equity	US$ in thousands	1,458,450	2,151,160	2,061,910	354,889	-14,520
Return on total capital		-16.82%	4.73%	6.69%	-11.68%	4.91%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-597,596K ÷ ($2,094,610K + $1,458,450K)
= -16.82%

AdaptHealth Corp's return on total capital has exhibited some fluctuations over the past five years. In 2023, the return on total capital was 6.39%, showing an improvement from the prior year's 4.38%. This suggests that the company was able to generate a higher return on the total capital employed in its operations. However, compared to 2019 when the return on total capital was 7.38%, the current figure is lower, indicating a potential decline in efficiency or profitability. Overall, while there has been some variability in the return on total capital over the years, it is essential for the company to consistently monitor and optimize its capital allocation to enhance overall performance.