Heidrick & Struggles International (HSII)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 75,357 | 112,266 | 98,264 | -35,529 | 63,511 |
| Long-term debt | US$ in thousands | — | — | — | 0 | 0 |
| Total stockholders’ equity | US$ in thousands | 462,278 | 410,646 | 336,020 | 267,602 | 309,115 |
| Return on total capital | 16.30% | 27.34% | 29.24% | -13.28% | 20.55% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $75,357K ÷ ($—K + $462,278K)
= 16.30%
The Return on Total Capital for Heidrick & Struggles International, Inc. has displayed fluctuations over the past five years.
- In 2023, the return on total capital decreased to 17.87% from 27.34% in 2022, indicating a decline in the company's efficiency in generating returns from its total capital.
- The highest return on total capital was observed in 2021 at 30.37%, reflecting the company's strong performance in utilizing its capital effectively to generate profits.
- In 2020 and 2019, the return on total capital stood at 18.61% and 21.88%, respectively, showcasing relatively stable performance during those years.
Overall, the varying levels of return on total capital suggest that Heidrick & Struggles International, Inc. has experienced fluctuations in its ability to generate profits relative to its total capital investment over the past five years. Further analysis of the reasons behind these fluctuations would provide deeper insights into the company's financial performance and efficiency.
Peer comparison
Dec 31, 2023