ANGI Homeservices Inc (ANGI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 40,246 | -8,071 | -74,451 | -79,022 | -5,150 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,062,800 | 1,040,770 | 1,048,380 | 1,134,620 | 1,272,290 |
| Return on total capital | 3.79% | -0.78% | -7.10% | -6.96% | -0.40% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $40,246K ÷ ($—K + $1,062,800K)
= 3.79%
The analysis of ANGI Homeservices Inc's return on total capital (ROTC) over the period from December 31, 2020, to December 31, 2024, reveals significant fluctuations in the company's efficiency in generating profits from its capital base.
In 2020, the company's ROTC was marginally negative at –0.40%, indicating that the company was slightly unprofitable in utilizing its total capital during that year. This negative return deepened considerably in 2021 and 2022, with ROTC values of –6.96% and –7.10%, respectively. These figures reflect a sustained period of inefficiency or unprofitability, suggesting that the company's operations or investment strategies during these years resulted in losses relative to its capital base.
Moving into 2023, the ROTC improved markedly to –0.78%, though still remaining negative. This indicates a partial recovery in the company's ability to generate returns from its total capital, although it continued to operate at a loss, albeit at a considerably reduced magnitude.
By 2024, the company's ROTC transitioned into positive territory, reaching 3.79%. This shift signifies that ANGI Homeservices Inc became profitable on its total capital base during this year, marking a notable turnaround. The positive return indicates increased efficiency in leveraging its capital to generate earnings, likely reflecting operational improvements, strategic shifts, or market conditions favorable to the company.
Overall, the trend demonstrates a period of substantial difficulty leading to negative returns in the initial years, followed by an encouraging recovery culminating in a profitable position in 2024. This progression underscores a notable improvement in the company's operational efficiency and profitability metrics over this multi-year span.
Peer comparison
Dec 31, 2024