ASGN Inc (ASGN)
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 | 304,400 | 364,100 | 410,700 | 529,000 | 303,900 |
| Long-term debt | US$ in thousands | 1,033,500 | 1,036,600 | 1,066,600 | 1,033,900 | 1,033,400 |
| Total stockholders’ equity | US$ in thousands | 1,776,700 | 1,892,100 | 1,901,300 | 1,865,400 | 1,587,100 |
| Return on total capital | 10.83% | 12.43% | 13.84% | 18.25% | 11.60% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $304,400K ÷ ($1,033,500K + $1,776,700K)
= 10.83%
ASGN Inc's return on total capital has shown fluctuations over the past five years. The ratio has ranged from a low of 10.83% as of December 31, 2024, to a high of 18.25% as of December 31, 2021. In 2020, the return on total capital was 11.60%, indicating a moderate performance. The following year, the ratio significantly improved to 18.25%, suggesting a strong increase in the company's ability to generate returns from its total invested capital. However, in the subsequent years, the return on total capital decreased, with values of 13.84% in 2022, 12.43% in 2023, and 10.83% in 2024.
Overall, it is important for ASGN Inc to closely monitor and manage its capital allocation and efficiency in order to maintain a healthy return on total capital and sustain long-term profitability. The fluctuation in this ratio indicates variability in the company's ability to generate returns relative to the total capital employed, which could be influenced by factors such as operational performance, financial management, and economic conditions.
Peer comparison
Dec 31, 2024