AMN Healthcare Services Inc (AMN)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	77,627	111,797	198,723	251,329	337,054	422,151	470,317	562,900	642,283	691,609	661,123	577,791	477,098	337,604	280,005	219,226	150,609	168,478	161,210	167,606
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	706,620	890,665	876,859	854,191	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
Return on total capital		10.99%	12.55%	22.66%	29.42%	40.55%	51.66%	61.38%	58.89%	61.54%	61.06%	63.61%	53.45%	41.06%	32.38%	28.97%	24.52%	18.37%	20.88%	20.74%	22.37%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $77,627K ÷ ($—K + $706,620K)
= 10.99%

AMN Healthcare Services Inc's return on total capital has varied over the period from March 31, 2020, to December 31, 2024. The return on total capital started at 22.37% in March 2020 and showed fluctuations until reaching its peak at 63.61% in June 2022. This high return indicates the company's effective utilization of its total capital to generate profits.

However, from September 2022 onwards, the return on total capital declined gradually, dropping to 10.99% by December 2024. The decreasing trend suggests potential challenges in maintaining profitability or efficient capital deployment during this period.

Overall, the return on total capital for AMN Healthcare Services Inc has shown significant variability, with periods of strong performance followed by a decline. It is essential for stakeholders to monitor this ratio closely to assess the company's ability to generate returns from its total capital investments.