ArcBest Corp (ARCB)

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	172,619	163,318	233,563	327,485	399,269	431,252	403,477	341,738	280,986	224,303	176,524	122,650	98,278	56,797	48,223	62,998	63,770	112,161	137,008	104,964
Long-term debt	US$ in thousands	161,990	176,296	168,105	—	198,371	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,242,360	1,220,730	1,211,360	1,205,860	1,151,400	1,126,290	1,063,210	983,172	929,067	961,043	898,134	851,909	828,593	802,639	775,091	759,206	763,043	763,626	743,159	721,755
Return on total capital		12.29%	11.69%	16.93%	27.16%	29.58%	38.29%	37.95%	34.76%	30.24%	23.34%	19.65%	14.40%	11.86%	7.08%	6.22%	8.30%	8.36%	14.69%	18.44%	14.54%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $172,619K ÷ ($161,990K + $1,242,360K)
= 12.29%

ArcBest Corp's return on total capital has shown a downward trend over the past eight quarters. The ratio decreased from 27.68% in Q1 2022 to 11.73% in Q4 2023. This decline indicates a decrease in the company's ability to generate profits relative to the total capital invested in the business.

The return on total capital was relatively high in Q4 2022 at 28.20% but has since experienced a steady decline. This downward trend could be concerning as it suggests lower efficiency in utilizing the company's total capital to generate returns for shareholders.

The recent figure of 11.73% in Q4 2023 indicates that ArcBest Corp may be facing challenges in achieving profitability relative to its total capital base. Investors and stakeholders may want to closely monitor the company's strategies to improve this ratio and enhance overall financial performance.