Heidrick & Struggles International (HSII)
Return on total capital
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,528 | 53,037 | 56,092 | 73,860 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0 | — | 100,000 | — |
| Total stockholders’ equity | US$ in thousands | 452,817 | 483,285 | 460,932 | 468,785 | 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 |
| Return on total capital | 1.66% | 10.97% | 12.17% | 15.76% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $7,528K ÷ ($—K + $452,817K)
= 1.66%
The return on total capital of Heidrick & Struggles International has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio ranged from a high of 31.04% on March 31, 2022, to a low of 1.66% on December 31, 2024.
During the initial part of the period, the return on total capital showed a generally positive trend, experiencing highs in March 31, 2022, and peaks in subsequent quarters. However, after March 31, 2022, the ratio began to decline, with fluctuations and a downward trajectory observed in the following quarters till December 31, 2024.
The ratio can reflect how efficiently the company is utilizing its total capital to generate profits. A higher return on total capital indicates that the company is utilizing its capital effectively to generate profits for shareholders. Conversely, a lower return may imply inefficiencies in capital utilization or declining profitability.
An in-depth analysis considering other financial metrics and factors would be necessary to understand the reasons behind the fluctuations in the return on total capital and to assess the overall financial performance and health of Heidrick & Struggles International.
Peer comparison
Dec 31, 2024