Expeditors International of Washington Inc (EXPD)

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	1,020,930	1,855,960	1,921,670	954,709	766,692
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,390,350	3,110,020	3,494,430	2,659,640	2,195,030
Return on total capital		42.71%	59.68%	54.99%	35.90%	34.93%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,020,930K ÷ ($—K + $2,390,350K)
= 42.71%

Expeditors International Of Washington, Inc. has exhibited fluctuating trends in its return on total capital over the past five years. The company's return on total capital was 39.32% in 2023, down from 58.66% in 2022 but still higher than the figures reported in 2021 (54.64%), 2020 (35.36%), and 2019 (34.93%). This metric indicates that the company is generating significant profits relative to the total capital invested in the business. However, the decreasing trend from 2022 to 2023 may raise concerns about the company's ability to sustain or improve its efficiency in generating returns on total capital in the future. Further analysis of the company's financial performance and strategic decisions may be necessary to fully understand the factors influencing these changes in return on total capital.