Heidrick & Struggles International (HSII)
Return on total capital
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 75,357 | 73,339 | 79,524 | 99,805 | 112,266 | 109,028 | 114,048 | 108,888 | 98,264 | 90,194 | 18,619 | -34,073 | -35,529 | -29,772 | 22,933 | 65,272 | 63,511 | 65,908 | 72,019 | 72,127 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 0 | — | 100,000 | — | 0 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 462,278 | 439,148 | 428,317 | 421,112 | 410,646 | 384,531 | 368,474 | 350,765 | 336,020 | 323,256 | 299,553 | 278,570 | 267,602 | 261,066 | 286,203 | 311,765 | 309,115 | 296,635 | 288,449 | 273,419 |
| Return on total capital | 16.30% | 16.70% | 18.57% | 23.70% | 27.34% | 28.35% | 30.95% | 31.04% | 29.24% | 27.90% | 6.22% | -12.23% | -13.28% | -11.40% | 5.94% | 20.94% | 20.55% | 22.22% | 24.97% | 26.38% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $75,357K ÷ ($—K + $462,278K)
= 16.30%
Heidrick & Struggles International, Inc.'s return on total capital has shown a decreasing trend over the past quarters, starting at 31.02% in Q1 2022 and declining to 17.87% in Q4 2023. This suggests a potential deterioration in the company's ability to generate returns on its total capital employed.
The declining trend in return on total capital could indicate inefficiencies in the company's capital utilization or decreased profitability relative to the amount of capital invested. Investors and stakeholders may need to closely monitor the trend to assess the company's operational performance and financial health. Further analysis of the company's financial statements and operational activities may be warranted to understand the drivers behind this decline in return on total capital and to identify potential areas for improvement.
Peer comparison
Dec 31, 2023