ExlService Holdings Inc (EXLS)

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	251,274	240,150	232,692	213,303	198,785	189,600	168,129	159,062	154,169	157,317	162,340	138,318	126,293	111,201	101,590	105,304	96,443	73,466	69,004	70,584
Long-term debt	US$ in thousands	135,000	160,000	190,000	160,000	220,000	235,000	250,000	260,000	0	170,000	139,432	202,687	201,961	216,235	215,527	234,820	194,131	223,916	231,409	299,765
Total stockholders’ equity	US$ in thousands	889,437	856,087	834,214	795,222	758,179	704,584	685,653	700,341	693,156	684,985	728,014	726,225	719,172	709,928	680,928	655,904	670,001	647,683	641,353	630,576
Return on total capital		24.53%	23.63%	22.72%	22.33%	20.32%	20.18%	17.97%	16.56%	22.24%	18.40%	18.71%	14.89%	13.71%	12.01%	11.33%	11.82%	11.16%	8.43%	7.91%	7.59%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $251,274K ÷ ($135,000K + $889,437K)
= 24.53%

ExlService Holdings Inc's return on total capital has been steadily increasing over the past eight quarters, with the latest reported figure of 21.93% in Q4 2023. This indicates that the company is effectively generating profits from its total capital employed in its operations. The upward trend in the return on total capital reflects the company's improved operational efficiency and ability to generate higher returns relative to its invested capital. It is important for the company to maintain and potentially further enhance this metric to demonstrate sustainable value creation for its shareholders.