CorVel Corp (CRVL)
Return on total capital
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 87,505 | 110,102 | 101,664 | 97,708 | 95,101 | 95,097 | 94,952 | 88,783 | 84,553 | 88,219 | 83,684 | 85,142 | 84,512 | 77,606 | 73,880 | 68,820 | 59,176 | 54,648 | 53,877 | 46,401 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 321,987 | 300,850 | 282,772 | 263,873 | 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 |
| Return on total capital | 27.18% | 36.60% | 35.95% | 37.03% | 38.40% | 40.72% | 42.66% | 42.89% | 41.82% | 45.29% | 42.30% | 41.41% | 39.79% | 36.11% | 33.01% | 29.98% | 26.85% | 26.04% | 26.62% | 23.42% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $87,505K ÷ ($—K + $321,987K)
= 27.18%
The return on total capital for CorVel Corp has shown a generally increasing trend from June 30, 2020, to September 30, 2022, with consistent improvements in profitability. The ratio continued to rise significantly to a peak of 45.29% by December 31, 2022, indicating the company's ability to generate higher returns relative to its total capital employed. However, from March 31, 2023, the return on total capital experienced some fluctuations, dropping to 27.18% by March 31, 2025. The decreasing trend observed in the latter half of the period may suggest potential changes in the company's capital structure or operational efficiency that could impact its overall profitability. It would be beneficial for stakeholders to closely monitor these fluctuations in the return on total capital to assess the company's financial performance and sustainability over time.