The Ensign Group Inc (ENSG)
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 | 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 280,398 | 326,714 | 317,250 | 309,804 | 298,049 | 286,243 | 277,246 | 266,530 | 261,780 | 251,317 | 241,480 | 232,739 | 226,082 | 209,434 | 189,920 | 170,970 | 150,150 | 134,275 | 128,388 | 123,284 |
| Long-term debt | US$ in thousands | 145,497 | 146,453 | 147,401 | 148,339 | 149,269 | 150,191 | — | — | 152,883 | — | — | — | — | — | — | — | — | — | 268,179 | 240,660 |
| Total stockholders’ equity | US$ in thousands | 1,491,860 | 1,459,750 | 1,387,780 | 1,318,170 | 1,247,330 | 1,180,060 | 1,120,170 | 1,071,590 | 1,020,770 | 979,200 | 928,593 | 876,047 | 818,077 | 764,755 | 715,997 | 675,236 | 654,197 | 686,259 | 662,052 | 632,705 |
| Return on total capital | 17.13% | 20.34% | 20.67% | 21.13% | 21.34% | 21.52% | 24.75% | 24.87% | 22.30% | 25.67% | 26.00% | 26.57% | 27.64% | 27.39% | 26.53% | 25.32% | 22.95% | 19.57% | 13.80% | 14.12% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $280,398K ÷ ($145,497K + $1,491,860K)
= 17.13%
The return on total capital for Ensign Group Inc has shown a slight decline over the past four quarters, with a decrease from 21.19% in Q4 2022 to 15.56% in Q4 2023. Despite this decline, the return on total capital remains relatively stable within a range of 15.56% to 21.90% throughout the quarters in 2022 and 2023. This indicates that the company is effectively utilizing its total capital to generate profits, although there may be fluctuations in performance over time. It is essential for Ensign Group Inc to continue monitoring and optimizing its capital allocation strategies to maintain sustainable profitability and shareholder value in the long term.
Peer comparison
Dec 31, 2023