Expeditors International of Washington, Inc. (EXPD)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,041,323	956,754	871,299	895,877	957,070	1,105,038	1,424,295	1,684,664	1,880,377	2,139,403	2,093,714	1,995,493	1,909,326	1,567,608	1,329,916	1,166,897	940,437	838,966	793,571	738,146
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,223,010	2,356,710	2,176,420	2,195,460	2,390,350	2,489,780	2,555,930	3,147,170	3,110,020	3,482,180	3,525,250	3,843,390	3,494,430	3,417,360	3,079,450	2,874,790	2,659,640	2,502,030	2,159,120	2,034,810
Return on total capital		46.84%	40.60%	40.03%	40.81%	40.04%	44.38%	55.73%	53.53%	60.46%	61.44%	59.39%	51.92%	54.64%	45.87%	43.19%	40.59%	35.36%	33.53%	36.75%	36.28%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,041,323K ÷ ($—K + $2,223,010K)
= 46.84%

Expeditors International of Washington, Inc.'s return on total capital has shown varying performance over the past five years. The ratio has generally been strong, with values consistently above 30%. There was a notable increase in the return on total capital from March 31, 2021, to September 30, 2022, where it surged from 40.59% to 61.44%, indicating efficient capital utilization during this period.

However, there was a decline in the return on total capital in the subsequent quarters, dropping to 40.81% by March 31, 2024. Despite this decrease, the ratio remained above 40%, signifying continued profitability and effective management of capital by the company.

The return on total capital peaked at 61.44% on September 30, 2022, and then fluctuated within a range between 40% and 60% until reaching 46.84% on December 31, 2024. Overall, Expeditors International of Washington, Inc. has demonstrated consistent profitability and efficient capital allocation, with the return on total capital exhibiting strong performance during the period under review.