Centene Corp (CNC)
Return on total capital
| 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 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,959,000 | 4,647,000 | 3,957,000 | 3,111,000 | 2,678,000 | 2,768,000 | 3,126,000 | 3,601,000 | 3,636,000 | 3,942,000 | 3,951,000 | 3,462,000 | 3,263,000 | 2,675,000 | 2,762,000 | 3,948,000 | 3,154,000 | 3,416,000 | 3,002,000 | 1,627,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 26,410,000 | 27,307,000 | 27,351,000 | 26,958,000 | 25,840,000 | 25,295,000 | 25,671,000 | 25,042,000 | 24,057,000 | 25,378,000 | 26,289,000 | 27,169,000 | 26,795,000 | 26,466,000 | 25,911,000 | 26,342,000 | 25,773,000 | 25,725,000 | 25,056,000 | 23,549,000 |
| Return on total capital | 18.78% | 17.02% | 14.47% | 11.54% | 10.36% | 10.94% | 12.18% | 14.38% | 15.11% | 15.53% | 15.03% | 12.74% | 12.18% | 10.11% | 10.66% | 14.99% | 12.24% | 13.28% | 11.98% | 6.91% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,959,000K ÷ ($—K + $26,410,000K)
= 18.78%
Centene Corp's return on total capital has shown fluctuations over the periods specified. The return on total capital was relatively stable in the range of 6% to 13% from March 2020 to June 2021. There was a significant increase in March 2021 to 14.99%, followed by a slight decrease in the subsequent quarter. The return then decreased further to around 10% in the third quarter of 2021 and remained in the range of 10% to 12% until March 2023.
From June 2023 onwards, there was an upward trend in return on total capital, reaching 18.78% by December 2024. This improvement indicates the company's ability to generate profits from its total capital employed. It is essential to monitor this ratio to ensure that Centene Corp continues to efficiently utilize its capital to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024