Adapthealth Corp (AHCO)

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	-597,589	-325,782	180,809	177,374	203,555	229,442	273,643	339,734	284,124	151,380	13,386	-87,420	-132,193	-64,805	-13,158	-12,386	18,746	57,368	48,826	34,042
Long-term debt	US$ in thousands	2,094,610	2,126,800	2,135,620	2,169,440	2,153,270	2,162,090	2,170,910	2,179,730	2,183,550	2,187,370	1,776,330	1,748,830	776,568	722,730	443,248	463,553	395,112	—	—	—
Total stockholders’ equity	US$ in thousands	1,458,450	1,732,480	2,180,940	2,159,890	2,151,160	2,154,370	2,133,220	2,115,360	2,061,910	1,990,110	1,889,960	1,788,280	354,889	360,999	8,491	-33,173	-14,520	5,000	5,000	5,000
Return on total capital		-16.82%	-8.44%	4.19%	4.10%	4.73%	5.32%	6.36%	7.91%	6.69%	3.62%	0.37%	-2.47%	-11.68%	-5.98%	-2.91%	-2.88%	4.93%	1,147.36%	976.52%	680.84%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-597,589K ÷ ($2,094,610K + $1,458,450K)
= -16.82%

AdaptHealth Corp's return on total capital has fluctuated over the past eight quarters. In Q4 2023, the return on total capital was 6.39%, showing an improvement compared to the previous quarter's 4.03%. This indicates that the company was able to generate a higher return relative to its total capital investment in the most recent quarter.

Looking at the trend over the past year, there were fluctuations in the return on total capital, with the highest return of 5.81% in Q1 2022 and the lowest return of 3.66% in Q2 2023. Overall, the return on total capital has shown variability but has generally remained above 3.5% in each quarter.

It is important for stakeholders to monitor this metric closely to assess the company's efficiency in generating returns from its total capital investment. Further analysis and comparison with industry benchmarks may provide additional insight into AdaptHealth Corp's performance in utilizing its capital effectively.