HealthStream Inc (HSTM)
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 | 16,019 | 12,449 | 8,055 | 15,818 | 14,720 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 340,752 | 334,064 | 339,019 | 334,062 | 338,168 |
| Return on total capital | 4.70% | 3.73% | 2.38% | 4.74% | 4.35% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $16,019K ÷ ($—K + $340,752K)
= 4.70%
Healthstream Inc's return on total capital has fluctuated over the past 5 years. In 2023, the return on total capital was 4.70%, an improvement from the previous year's 3.73%. However, the return on total capital was lower compared to 2020 when it was 4.74%. The company's performance in 2021, with a return on total capital of 2.38%, was the lowest among the years presented. Despite some fluctuations, Healthstream Inc has generally maintained a positive return on total capital over the past five years, indicating a reasonable ability to generate profits relative to the capital invested in the business.
Peer comparison
Dec 31, 2023