HealthStream Inc (HSTM)
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 | 21,287 | 18,511 | 12,449 | 8,055 | 15,818 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 359,355 | 340,752 | 334,064 | 339,019 | 334,062 |
| Return on total capital | 5.92% | 5.43% | 3.73% | 2.38% | 4.74% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $21,287K ÷ ($—K + $359,355K)
= 5.92%
HealthStream Inc's return on total capital has fluctuated over the past five years. It stood at 4.74% on December 31, 2020, decreased to 2.38% by December 31, 2021, then slightly improved to 3.73% by December 31, 2022. The return further increased to 5.43% by December 31, 2023, and reached 5.92% by December 31, 2024. This trend indicates a varying performance in terms of generating returns relative to the total capital employed by the company. It suggests that the company has been able to enhance its efficiency in utilizing capital effectively to generate profits in recent years, although continued monitoring is necessary to ensure sustained performance.
Peer comparison
Dec 31, 2024