Community Healthcare Trust Inc (CHCT)
Return on total capital
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 25,918 | 25,046 | 25,414 | 23,002 | 34,030 | 34,304 | 33,769 | 33,880 | 33,330 | 31,739 | 30,847 | 29,110 | 27,876 | 26,334 | 16,341 | 6,785 | -3,260 | -10,669 | -4,320 | 2,515 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 513,256 | 522,294 | 505,325 | 494,515 | 496,814 | 478,486 | 472,962 | 471,114 | 462,112 | 461,671 | 457,056 | 450,086 | 429,916 | 409,621 | 387,103 | 367,775 | 353,411 | 300,947 | 279,120 | 269,683 |
| Return on total capital | 5.05% | 4.80% | 5.03% | 4.65% | 6.85% | 7.17% | 7.14% | 7.19% | 7.21% | 6.87% | 6.75% | 6.47% | 6.48% | 6.43% | 4.22% | 1.84% | -0.92% | -3.55% | -1.55% | 0.93% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $25,918K ÷ ($—K + $513,256K)
= 5.05%
Community Healthcare Trust Inc's return on total capital has shown a downward trend over the past year. In Q4 2023, the return on total capital was 2.73%, slightly higher than the previous quarter but lower compared to the same quarter in the prior year. The company's return on total capital has declined from 4.50% in Q1 2022 to 2.73% in Q4 2023, indicating a decrease in the efficiency of generating profits relative to the total capital employed. This declining trend suggests that the company may be facing challenges in effectively utilizing its capital to generate returns for its shareholders. Further investigation into the factors contributing to this decline may be necessary to identify areas for improvement in the company's operational and financial performance.
Peer comparison
Dec 31, 2023