CorVel Corp (CRVL)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 95,187 | 95,184 | 95,041 | 88,873 | 84,645 | 88,313 | 83,779 | 85,239 | 84,610 | 77,706 | 73,982 | 68,923 | 59,254 | 54,700 | 52,971 | 54,252 | 60,512 | 78,299 | 79,597 | 79,743 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 247,647 | 233,530 | 222,569 | 206,980 | 202,176 | 194,805 | 197,833 | 205,628 | 212,395 | 214,927 | 223,795 | 229,539 | 220,402 | 209,873 | 202,400 | 198,092 | 189,711 | 193,365 | 200,816 | 203,817 |
| Return on total capital | 38.44% | 40.76% | 42.70% | 42.94% | 41.87% | 45.33% | 42.35% | 41.45% | 39.84% | 36.15% | 33.06% | 30.03% | 26.88% | 26.06% | 26.17% | 27.39% | 31.90% | 40.49% | 39.64% | 39.12% |
March 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $95,187K ÷ ($—K + $247,647K)
= 38.44%
The return on total capital for CorVel Corp has shown a generally positive trend over the past few quarters. The ratio has ranged from 26.06% to 45.33% during the periods analyzed.
CorVel Corp's return on total capital peaked at 45.33% in the fourth quarter of 2022 and has fluctuated within a relatively narrow range since then. The most recent data point, as of March 31, 2024, indicates a return on total capital of 38.44%, which is slightly lower than the previous quarter but still demonstrates a strong performance in generating returns relative to the total capital employed.
Overall, the company has managed to maintain a favorable level of return on total capital, indicating efficient use of both debt and equity to generate profits. It is essential for investors and stakeholders to continue monitoring this ratio to assess the company's ability to generate returns on its total invested capital.