CorVel Corp (CRVL)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 95,187 | 84,646 | 84,610 | 59,252 | 60,711 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 247,647 | 202,176 | 212,395 | 220,402 | 189,711 |
| Return on total capital | 38.44% | 41.87% | 39.84% | 26.88% | 32.00% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $95,187K ÷ ($—K + $247,647K)
= 38.44%
CorVel Corp's return on total capital has fluctuated over the past five years, ranging from 26.88% in March 2021 to 41.87% in March 2023. The company's return on total capital decreased to 38.44% in March 2024. Despite this slight decline, the company has generally demonstrated strong performance in generating returns from its total capital base. The return on total capital metric indicates the efficiency with which CorVel Corp utilizes its total capital to generate profits. Overall, the company's ability to generate consistently high returns on total capital reflects its effective management of resources and profitability in the business operations.