ANGI Homeservices Inc (ANGI)
Return on total capital
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 53,307 | 31,192 | 57,199 | 30,401 | 9,719 | -7,139 | -93,424 | -94,661 | -107,312 | -127,518 | -105,571 | -106,784 | -116,005 | -82,315 | -53,812 | -41,156 | 10,067 | -5,150 | 7,013 | 36,040 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,049,040 | 1,062,800 | 1,069,500 | 1,039,800 | 1,039,020 | 1,040,770 | 1,041,690 | 1,038,240 | 1,044,980 | 1,048,380 | 1,085,610 | 1,088,900 | 1,103,360 | 1,134,620 | 1,157,910 | 1,198,370 | 1,223,120 | 1,272,290 | 1,273,910 | 1,292,320 |
| Return on total capital | 5.08% | 2.93% | 5.35% | 2.92% | 0.94% | -0.69% | -8.97% | -9.12% | -10.27% | -12.16% | -9.72% | -9.81% | -10.51% | -7.25% | -4.65% | -3.43% | 0.82% | -0.40% | 0.55% | 2.79% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $53,307K ÷ ($—K + $1,049,040K)
= 5.08%
The analysis of ANGI Homeservices Inc.'s return on total capital reveals a trajectory characterized by significant fluctuations over the period from June 2020 through March 2025. Initially, the measure demonstrated positive performance, with a return of approximately 2.79% as of June 2020, indicating effective utilization of total capital during that period. However, from September 2020 onward, the return experienced a declining trend, turning negative by December 2020 at -0.40%, and reaching a low of -12.16% in December 2022. These sustained negative figures suggest periods of inefficient capital deployment, potentially attributable to operational challenges or strategic shifts impacting profitability.
Throughout 2021 and 2022, the negative returns persisted, with the lowest point occurring at -12.16% at the end of 2022, reflecting a period of considerable underperformance relative to total capital employed. The persistent negative values imply that the company was not generating sufficient operating income to justify its capital base, raising concerns regarding operational efficiency and profitability during those years.
Starting in early 2023, a notable upward trend emerges. By March 2023, the return approached -10.27%, and it improved to -9.12% by June 2023. The positive momentum continued into late 2023 and early 2024, with the return reaching -0.69% in December 2023 and crossing into positive territory at 0.94% in March 2024. The subsequent quarters exhibit further improvement, with returns advancing to 2.92% in June 2024 and reaching 5.35% by September 2024. This pattern indicates a significant turnaround in capital efficiency, suggesting that the company has begun generating higher operating profits relative to its capital investments.
The positive trajectory persisted into the early part of 2025, with the return on total capital recorded at approximately 5.08% in March 2025. The upward trend highlights an ongoing enhancement in operational performance and the potential restoration of capital utilization effectiveness.
Overall, the data suggests that ANGI Homeservices Inc. experienced a prolonged period of negative returns, reflecting operational difficulties during 2020 to 2022. However, from late 2023 onwards, there is compelling evidence of a recovery, culminating in positive returns that may indicate improved operational strategies, market conditions, or both, leading to better-capitalized profitability.
Peer comparison
Mar 31, 2025