HealthStream Inc (HSTM)
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 | 21,288 | 20,855 | 19,220 | 18,817 | 16,018 | 14,841 | 12,360 | 11,305 | 12,449 | 8,910 | 8,313 | 8,791 | 8,056 | 9,653 | 11,002 | 11,875 | 15,819 | 18,019 | 18,633 | 16,597 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 359,355 | 355,481 | 349,214 | 344,854 | 340,752 | 342,246 | 340,619 | 336,039 | 334,064 | 330,282 | 326,732 | 322,572 | 339,019 | 342,198 | 340,379 | 336,805 | 334,062 | 336,265 | 339,424 | 335,416 |
| Return on total capital | 5.92% | 5.87% | 5.50% | 5.46% | 4.70% | 4.34% | 3.63% | 3.36% | 3.73% | 2.70% | 2.54% | 2.73% | 2.38% | 2.82% | 3.23% | 3.53% | 4.74% | 5.36% | 5.49% | 4.95% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $21,288K ÷ ($—K + $359,355K)
= 5.92%
HealthStream Inc's return on total capital has shown fluctuating trends over the past few years. The ratio gradually decreased from 4.95% as of March 31, 2020, to a low of 2.38% by December 31, 2021. This decline may indicate inefficiencies in capital utilization or profitability challenges during this period.
However, there was a slight uptick in the return on total capital, reaching 5.46% by March 31, 2024, and further improving to 5.92% by December 31, 2024. These increases suggest potential enhancements in the company's ability to generate profits from its total capital base.
Overall, HealthStream Inc's return on total capital demonstrates variability, with periods of both declines and improvements. It would be important to further investigate the factors driving these fluctuations to gain a deeper understanding of the company's financial performance and efficiency in capital allocation.
Peer comparison
Dec 31, 2024