The Ensign Group Inc (ENSG)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 280,398 | 298,049 | 261,780 | 226,082 | 150,150 |
| Long-term debt | US$ in thousands | 145,497 | 149,269 | 152,883 | — | — |
| Total stockholders’ equity | US$ in thousands | 1,491,860 | 1,247,330 | 1,020,770 | 818,077 | 654,197 |
| Return on total capital | 17.13% | 21.34% | 22.30% | 27.64% | 22.95% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $280,398K ÷ ($145,497K + $1,491,860K)
= 17.13%
Ensign Group Inc's return on total capital has exhibited some fluctuations over the past five years. The return on total capital decreased from 2019 to 2020, indicating a dip in the efficiency of capital utilization during that period. However, the company showed improvement in subsequent years, with the return on total capital increasing from 2020 to 2021 and peaking in 2022. The return on total capital then experienced a slight decline in 2023 but remained relatively strong compared to previous years. Overall, Ensign Group Inc has maintained a fairly healthy return on total capital over the five-year period, with fluctuations reflecting changes in capital efficiency and profitability.
Peer comparison
Dec 31, 2023