Adtalem Global Education Inc (ATGE)

Return on total capital

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	226,660	166,758	424,839	123,692	-80,763
Long-term debt	US$ in thousands	648,712	695,077	838,908	1,067,710	286,115
Total stockholders’ equity	US$ in thousands	1,369,140	1,457,340	1,491,390	1,293,520	1,309,750
Return on total capital		11.23%	7.75%	18.23%	5.24%	-5.06%

June 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $226,660K ÷ ($648,712K + $1,369,140K)
= 11.23%

Adtalem Global Education Inc's return on total capital has shown fluctuating performance over the past five years. The return on total capital was positive in four out of the five years, with the highest return recorded in 2022 at 18.23% and the lowest return in 2020 at -5.06%.

The company's return on total capital increased significantly from 2020 to 2022, indicating improved efficiency in utilizing its total capital to generate profits. However, there was a slight decrease in the return on total capital in 2023 and 2024 compared to 2022, suggesting a potential slowdown in the company's ability to generate returns on its total capital during those years.

Overall, Adtalem Global Education Inc's return on total capital has been positive, albeit with some fluctuations, which may require further investigation to understand the factors driving these changes and to sustain or improve performance in the future.