Enhabit Inc. (EHAB)
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 | ||
|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -48,400 | -145,300 | -135,400 | -34,100 | |||
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 669,700 | 676,600 | 675,200 | 744,300 | 741,700 | 835,400 | 822,300 |
| Return on total capital | -7.23% | -21.48% | -20.05% | -4.58% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-48,400K ÷ ($—K + $669,700K)
= -7.23%
Return on total capital is a key financial metric that indicates the efficiency and profitability of a company in generating returns from its total invested capital.
Enhabit Inc.'s return on total capital has been fluctuating over the past seven quarters, ranging from -21.48% to -4.58%. The negative values signify that the company is not effectively utilizing its total capital to generate profits.
The downward trend in return on total capital from June 2022 to Sep 2023 indicates a decline in the company's ability to generate returns relative to its total capital base. This could be a cause for concern as it suggests a lack of profitability or operational efficiency.
It is important for Enhabit Inc. to analyze the factors contributing to the low return on total capital and take necessary steps to improve profitability and operational performance to enhance overall financial health and shareholder value.
Peer comparison
Dec 31, 2023