Expeditors International of Washington, Inc. (EXPD)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	1,041,320	939,933	1,824,370	1,925,030	956,783
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,223,010	2,390,350	3,110,020	3,494,430	2,659,640
Return on total capital		46.84%	39.32%	58.66%	55.09%	35.97%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,041,320K ÷ ($—K + $2,223,010K)
= 46.84%

Expeditors International of Washington, Inc.'s return on total capital has exhibited fluctuations over the past five years, with a notable increase from 35.97% in 2020 to 58.66% in 2022, indicating a significant improvement in capital utilization efficiency during that period. However, this metric declined to 39.32% in 2023 before rebounding to 46.84% in 2024.

Overall, the company has demonstrated a generally strong performance in terms of generating returns on its total capital, with the figure consistently exceeding 35% throughout the period analyzed. This suggests that Expeditors International has effectively managed its capital resources to generate profits for its shareholders and is making efficient use of both debt and equity to drive profitability.