Heidrick & Struggles International (HSII)
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 | 7,528 | 75,357 | 112,266 | 98,264 | -35,529 |
| Long-term debt | US$ in thousands | — | — | — | — | 0 |
| Total stockholders’ equity | US$ in thousands | 452,817 | 462,278 | 410,646 | 336,020 | 267,602 |
| Return on total capital | 1.66% | 16.30% | 27.34% | 29.24% | -13.28% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,528K ÷ ($—K + $452,817K)
= 1.66%
Heidrick & Struggles International's return on total capital has experienced significant fluctuations over the past five years. The ratio was -13.28% as of December 31, 2020, indicating a negative return on the capital employed during that period. However, there was a notable improvement in the following years, with the ratio increasing to 29.24% as of December 31, 2021 and then slightly dropping to 27.34% by December 31, 2022.
In the subsequent years, Heidrick & Struggles International's return on total capital exhibited a more moderate performance. As of December 31, 2023, the ratio stood at 16.30%, indicating a solid return on the total capital employed, although lower than the previous year. By December 31, 2024, there was a further decline in the return on total capital to 1.66%, reflecting a substantial decrease compared to the previous year.
Overall, the trend in Heidrick & Struggles International's return on total capital fluctuated significantly, with periods of both improved performance and deterioration. It is important for the company to closely monitor and manage its capital utilization to ensure sustainable and profitable operations in the future.
Peer comparison
Dec 31, 2024