Hims Hers Health Inc (HIMS)
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 | 61,903 | -29,453 | -68,697 | -110,795 | -17,977 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 476,716 | 344,029 | 311,741 | 334,619 | -146,874 |
| Return on total capital | 12.99% | -8.56% | -22.04% | -33.11% | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $61,903K ÷ ($—K + $476,716K)
= 12.99%
Hims Hers Health Inc's return on total capital has shown significant fluctuations over the past few years. From being negative in 2021 and 2022 at -33.11% and -22.04% respectively, the company managed to improve its performance in 2023 with a negative return of -8.56%. Most notably, in 2024, the company experienced a positive return on total capital of 12.99%. This positive turn indicates that the company has potentially implemented strategic measures to enhance its capital efficiency and generate better returns for its stakeholders. Overall, it is crucial for the company to sustain and build upon this improved performance to ensure long-term financial health and growth.
Peer comparison
Dec 31, 2024