Centene Corp (CNC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,959,000 | 2,930,000 | 2,627,000 | 2,478,000 | 3,501,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 26,410,000 | 25,840,000 | 24,057,000 | 26,795,000 | 25,773,000 |
| Return on total capital | 18.78% | 11.34% | 10.92% | 9.25% | 13.58% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,959,000K ÷ ($—K + $26,410,000K)
= 18.78%
Centene Corp's return on total capital has shown variations over the past five years. In December 2020, the return on total capital was 13.58%, indicating a solid performance. However, by December 2021, the return decreased to 9.25%, suggesting a dip in the company's efficiency in generating returns from its total capital.
Subsequently, in December 2022 and 2023, the return on total capital improved to 10.92% and 11.34% respectively, indicating a recovery in performance. Notably, by December 2024, the return on total capital surged to 18.78%, reflecting significant improvement and potentially efficient utilization of capital resources.
Overall, Centene Corp's return on total capital has shown fluctuations but ended on a strong note in 2024, which could be a positive signal for investors and stakeholders. It is essential for the company to maintain steady growth in this metric to ensure sustainable performance and value creation in the future.
Peer comparison
Dec 31, 2024