Adtalem Global Education Inc (ATGE)

Return on total capital

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	350,832	227,596	175,007	77,854	126,257
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,433,620	1,369,140	1,457,340	1,505,070	1,301,070
Return on total capital		24.47%	16.62%	12.01%	5.17%	9.70%

June 30, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $350,832K ÷ ($—K + $1,433,620K)
= 24.47%

The data indicates that Adtalem Global Education Inc’s return on total capital has experienced notable fluctuations over the reported period. As of June 30, 2021, the return was 9.70%, reflecting the company's ability to generate earnings relative to its total capital during that fiscal year. However, there was a significant decline by June 30, 2022, with the return dropping to 5.17%, which may suggest operational challenges or increased costs impacting overall profitability.

Subsequently, a marked recovery is observed, with the return increasing to 12.01% by June 30, 2023, indicating improved efficiency in capital utilization and possibly better financial performance. The upward trend continues into June 30, 2024, where the return reaches 16.62%, demonstrating sustained improvement in generating profits from invested capital.

The most recent data for June 30, 2025, shows a substantial increase in the return to 24.47%. This significant rise suggests that Adtalem Global Education Inc has successfully enhanced its use of total capital, either through increased profitability, better operational leverage, or strategic improvements. Overall, the pattern of the return on total capital highlights periods of volatility but culminates in a strong upward trajectory, indicative of effective capital management and operational growth in recent years.