Adtalem Global Education Inc (ATGE)

Return on total capital

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	226,660	199,356	196,095	175,722	166,101	175,721	490,968	451,402	429,921	412,700	74,545	100,793	133,512	-186,098	-60,945	-73,446	-80,763	274,710	162,284	178,281
Long-term debt	US$ in thousands	648,712	648,106	696,373	695,725	695,077	694,429	693,781	741,696	838,908	1,225,360	1,599,540	1,600,040	1,067,710	1,067,560	284,131	285,621	286,115	446,610	412,105	327,600
Total stockholders’ equity	US$ in thousands	1,369,140	1,320,960	1,369,400	1,378,660	1,457,340	1,510,380	1,509,220	1,496,020	1,491,390	1,478,950	1,276,990	1,265,180	1,293,520	1,306,220	1,313,780	1,330,970	1,309,750	1,294,560	1,294,910	1,327,190
Return on total capital		11.23%	10.12%	9.49%	8.47%	7.72%	7.97%	22.29%	20.17%	18.45%	15.26%	2.59%	3.52%	5.65%	-7.84%	-3.81%	-4.54%	-5.06%	15.78%	9.51%	10.77%

June 30, 2024 calculation

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

The return on total capital for Adtalem Global Education Inc has shown fluctuation over the past few quarters.

- The return on total capital increased from 8.47% in September 2023 to 11.23% in June 2024, indicating an improvement in the company's ability to generate profits relative to the total capital employed.

- However, the return on total capital experienced a significant decline in the following quarter, dropping to 10.12% in March 2024.

- The return on total capital reached a peak of 22.29% in December 2022, reflecting a period of strong profitability for the company.

- In contrast, the return on total capital was negative in the first quarter of 2021 and the fourth quarter of 2020, at -7.84% and -3.81% respectively, suggesting that the company experienced losses relative to the capital invested during those periods.

Overall, the return on total capital for Adtalem Global Education Inc has shown variability, with periods of both strong profitability and financial challenges. It is essential for investors and stakeholders to closely monitor these fluctuations to assess the company's financial health and performance.