AMN Healthcare Services Inc (AMN)

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	338,429	423,526	472,968	564,838	647,101	696,427	665,888	581,529	477,998	338,064	278,697	217,924	149,265	167,574	160,851	167,606	176,915	180,124	183,020	192,679
Long-term debt	US$ in thousands	1,304,690	939,393	1,034,100	983,801	843,505	843,210	842,914	842,618	842,322	842,027	841,731	896,435	857,961	894,533	956,106	1,083,910	617,159	611,899	662,610	470,798
Total stockholders’ equity	US$ in thousands	831,256	817,169	766,297	955,774	1,043,630	1,132,630	1,039,340	1,080,930	1,162,030	1,042,480	966,382	894,060	819,677	807,073	777,406	749,080	736,742	705,104	680,440	649,986
Return on total capital		15.84%	24.11%	26.27%	29.12%	34.29%	35.25%	35.38%	30.23%	23.85%	17.94%	15.41%	12.17%	8.90%	9.85%	9.28%	9.14%	13.07%	13.68%	13.63%	17.19%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 shown a decreasing trend over the past few quarters. The return on total capital was 15.84% in Q4 2023, which was lower compared to the previous quarter's figure of 24.11% in Q3 2023. This downward trend continued from the previous quarters, indicating a decrease in the company's efficiency in generating returns from its total capital.

Looking further back, the return on total capital has shown a general decline since Q2 2022 when it was at its peak of 35.38%. This suggests a possible longer-term trend that may need to be monitored closely.

Overall, the decreasing trend in AMN Healthcare Services Inc.'s return on total capital may indicate a need for the company to assess and possibly optimize its capital utilization and operational efficiency to enhance returns for its capital providers.