Community Healthcare Trust Inc (CHCT)
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 | 25,918 | 34,030 | 33,330 | 27,876 | 19,169 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 513,256 | 496,814 | 462,112 | 429,916 | 353,411 |
| Return on total capital | 5.05% | 6.85% | 7.21% | 6.48% | 5.42% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $25,918K ÷ ($—K + $513,256K)
= 5.05%
Community Healthcare Trust Inc's return on total capital has exhibited fluctuations over the past five years. In 2023, the return on total capital decreased to 2.73% from 3.97% in 2022, marking a significant decline. This downward trend follows a general pattern of variability in the return on total capital, as evidenced by the figures for the preceding years.
The return on total capital in 2021 was relatively higher at 4.50% compared to the figures for 2020 and 2019, which stood at 4.35% and 3.41%, respectively. Despite the fluctuations observed over the years, the return on total capital demonstrates Community Healthcare Trust Inc's ability to generate income relative to the total capital employed in its operations.
It is essential for stakeholders to monitor the return on total capital closely to assess the company's efficiency in utilizing its capital resources effectively to generate returns for its shareholders. The varying trends in the return on total capital highlight the importance of conducting a comprehensive analysis of the company's financial performance and capital management strategies.
Peer comparison
Dec 31, 2023