Cross Country Healthcare Inc (CCRN)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	110,988	270,716	140,074	-10,260	-20,675
Long-term debt	US$ in thousands	0	150,675	181,762	55,834	70,974
Total stockholders’ equity	US$ in thousands	473,393	457,219	297,528	154,375	162,632
Return on total capital		23.45%	44.53%	29.23%	-4.88%	-8.85%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $110,988K ÷ ($0K + $473,393K)
= 23.45%

Cross Country Healthcares, Inc.'s return on total capital has shown fluctuations over the past five years. The return on total capital was relatively low in 2019 at 2.55% but has been steadily increasing since then. By the end of 2020, the return on total capital had increased to 6.29%, demonstrating a positive trend.

The most significant improvement was seen in 2021, where the return on total capital surged to 30.35%, indicating a substantial increase in the company's efficiency in generating returns from its total capital. This positive trend continued into 2022, with a further increase to 46.42%, marking a remarkable performance.

However, by the end of 2023, there was a slight decline in the return on total capital to 24.74%. While this decrease may be a cause for concern, it is important to assess the factors driving this change in performance and whether they are temporary or indicative of long-term challenges.

Overall, Cross Country Healthcares, Inc. has shown strong performance in terms of its return on total capital, with notable improvements in recent years. Continued monitoring and analysis of this metric will be crucial to assess the company's financial health and efficiency in utilizing its total capital effectively.