Adtalem Global Education Inc (ATGE)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 326,752 | 320,086 | 310,033 | 288,477 | 246,001 | 216,452 | 199,213 | 180,491 | 174,743 | 177,087 | 147,987 | 130,129 | 57,727 | 55,472 | 70,369 | 74,684 | 160,654 | 124,397 | 240,152 | 224,181 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,433,620 | 1,432,710 | 1,438,910 | 1,389,950 | 1,369,140 | 1,320,960 | 1,369,400 | 1,378,660 | 1,457,340 | 1,510,380 | 1,522,720 | 1,510,040 | 1,505,070 | 1,491,310 | 1,287,890 | 1,265,180 | 1,301,070 | 1,306,220 | 1,313,780 | 1,330,970 |
| Return on total capital | 22.79% | 22.34% | 21.55% | 20.75% | 17.97% | 16.39% | 14.55% | 13.09% | 11.99% | 11.72% | 9.72% | 8.62% | 3.84% | 3.72% | 5.46% | 5.90% | 12.35% | 9.52% | 18.28% | 16.84% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $326,752K ÷ ($—K + $1,433,620K)
= 22.79%
The analysis of Adtalem Global Education Inc.'s return on total capital (ROTC) over the specified period reveals significant fluctuations and an overall upward trend from September 2020 through June 2025.
In September 2020, the ROTC stood at 16.84%, indicating relatively strong capital efficiency early in the period. This figure increased to 18.28% by December 2020, reflecting initial improvement in generating returns relative to total capital. However, a notable decline was observed by March 2021, where the ROTC decreased sharply to 9.52%, suggesting a deterioration in operating efficiency or increased capital costs during that quarter.
Subsequently, the ROTC experienced a partial recovery, reaching 12.35% in June 2021, before declining further to a low of 5.90% in September 2021 and remaining relatively low through the end of 2021, with figures of 5.46% in December 2021 and 3.72% in March 2022. The low points during this period indicate challenges in maintaining profitability or effective utilization of total capital.
Starting in mid-2022, there was a gradual improvement, with the ROTC increasing to 8.62% by September 2022 and further to 9.72% by December 2022. This upward momentum continued into 2023, reaching 11.72% in March 2023 and 11.99% in June 2023, before a steady increase was observed in the latter part of 2023, with the ROTC attaining 13.09% in September 2023 and 14.55% in December 2023.
Moving into 2024 and mid-2025, the return on total capital exhibited consistent growth, reaching 16.39% in March 2024, 17.97% in June 2024, and surpassing 20% in September 2024 at 20.75%. The upward trend persisted with the figures reaching 21.55% in December 2024, 22.34% in March 2025, and 22.79% in June 2025.
In summary, after experiencing a period of decline and low yields around 2021-2022, Adtalem's ROTC demonstrated sustained improvement over the subsequent years, approaching and exceeding the 20% threshold by late 2024 and mid-2025. This pattern indicates a potential recovery in operational efficiency and capital utilization, reflecting an overall positive trajectory in the company's ability to generate returns from its total capital base.
Peer comparison
Jun 30, 2025