Hims Hers Health Inc (HIMS)
Return on total capital
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 42,907 | 11,979 | -8,287 | -29,453 | -40,658 | -52,087 | -63,041 | -68,697 | -88,340 | -87,471 | -76,400 | -110,795 | -84,752 | -71,478 | -63,303 | -17,977 | -13,016 | -7,626 | -6,699 | |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 440,051 | 361,966 | 344,482 | 344,029 | 328,562 | 320,071 | 312,745 | 311,741 | 310,946 | 319,059 | 327,715 | 334,619 | 355,153 | 293,054 | 292,466 | -146,874 | -143,341 | -138,949 | -139,953 | -139,793 |
| Return on total capital | 9.75% | 3.31% | -2.41% | -8.56% | -12.37% | -16.27% | -20.16% | -22.04% | -28.41% | -27.42% | -23.31% | -33.11% | -23.86% | -24.39% | -21.64% | — | — | — | — |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $42,907K ÷ ($—K + $440,051K)
= 9.75%
The return on total capital for Hims Hers Health Inc has demonstrated fluctuating trends over the past several quarters. The ratio was negative in the recent quarters, indicating that the company's capital has not been efficiently utilized to generate returns for shareholders. Specifically, the return on total capital ranged from -2.41% to -28.41% in the last year, with the lowest return recorded at -33.11% in the fourth quarter of 2021.
These negative figures suggest that there may be challenges in the company's operational efficiency or profitability. It is crucial for Hims Hers Health Inc to address these issues and focus on improving the utilization of its capital to enhance returns and create long-term value for its stakeholders. A consistent negative return on total capital can negatively impact investor confidence and the company's overall financial health. Further analysis of the company's operations and financial strategies may be necessary to identify the root causes of these declining returns.