AMN Healthcare Services Inc (AMN)

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	338,429	647,101	477,998	149,265	176,915
Long-term debt	US$ in thousands	1,304,690	843,505	842,322	857,961	617,159
Total stockholders’ equity	US$ in thousands	831,256	1,043,630	1,162,030	819,677	736,742
Return on total capital		15.84%	34.29%	23.85%	8.90%	13.07%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $338,429K ÷ ($1,304,690K + $831,256K)
= 15.84%

AMN Healthcare Services Inc.'s return on total capital has demonstrated fluctuations over the past five years. In 2023, the return on total capital decreased to 15.84% from 34.29% in 2022, indicating a significant drop in the company's ability to generate returns on the total capital employed in its operations. However, when compared to 2021 and 2019, the return on total capital in 2023 remained higher at 15.84%.

The highest return on total capital was observed in 2022 at 34.29%, showcasing the company's efficient utilization of capital to generate profits during that period. In contrast, the return on total capital was relatively lower in 2020 and 2019 at 8.87% and 13.07%, respectively.

The fluctuations in return on total capital suggest varying levels of profitability and efficiency in utilizing the company's total capital over the years. Further analysis is required to understand the factors contributing to these fluctuations and to assess the sustainability of the company's returns in the future.