Centene Corp (CNC)
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 | 4,326,000 | 4,334,000 | 4,567,000 | 2,893,000 | 2,627,000 | 3,268,000 | 2,985,000 | 2,681,000 | 2,489,000 | 1,737,000 | 1,803,000 | 4,317,000 | 3,515,000 | 3,785,000 | 3,099,000 | 1,730,000 | 2,206,000 | 2,281,000 | 2,132,000 | 1,921,000 |
| Long-term debt | US$ in thousands | 17,710,000 | 17,888,000 | 17,896,000 | 18,223,000 | 17,938,000 | 18,084,000 | 18,456,000 | 18,640,000 | 18,571,000 | 18,594,000 | 16,536,000 | 16,695,000 | 16,682,000 | 16,737,000 | 16,708,000 | 17,150,000 | 13,638,000 | 6,975,000 | 7,047,000 | 6,775,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 12,551,000 | 12,311,000 | 12,154,000 | 11,540,000 |
| Return on total capital | 9.93% | 10.04% | 10.48% | 6.69% | 6.26% | 7.52% | 6.67% | 5.85% | 5.49% | 3.85% | 4.25% | 10.03% | 8.28% | 8.91% | 7.42% | 4.25% | 8.42% | 11.83% | 11.10% | 10.49% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,326,000K ÷ ($17,710,000K + $25,840,000K)
= 9.93%
To analyze the return on total capital of Centene Corp, we observe fluctuations in the ratio over the past eight quarters. The data shows that the return on total capital has ranged from 7.51% to 9.02%.
In Q4 2023, the return on total capital was 7.92%, slightly below the previous quarter's figure of 9.01%. This indicates a decrease in the efficiency of capital utilization in the most recent quarter. However, the return has been fairly consistent, hovering around the 8% mark for the past two years.
The highest return on total capital was recorded in Q3 2022 at 9.02%, while the lowest was observed in Q1 2022 at 7.51%. This demonstrates a moderate level of variability in Centene Corp.'s ability to generate returns on its total capital investments.
Overall, the return on total capital for Centene Corp. has shown stability and consistency over the quarters, with minor fluctuations within a relatively narrow range. This suggests that the company has been effective in efficiently utilizing its capital to generate returns for its investors.
Peer comparison
Dec 31, 2023