HealthStream Inc (HSTM)

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	16,016	14,839	12,358	11,303	12,447	8,910	8,313	8,791	8,056	9,653	11,002	11,875	15,819	18,018	18,632	16,596	14,721	14,222	15,135	17,131
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	338,168	333,893	329,671	325,141
Return on total capital		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%	4.35%	4.26%	4.59%	5.27%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $16,016K ÷ ($—K + $340,752K)
= 4.70%

Healthstream Inc's return on total capital has shown a fluctuating trend over the past eight quarters, ranging from 2.54% to 4.70%. The return on total capital increased from 2.54% in Q2 2022 to peak at 4.70% in Q4 2023, reflecting an improving performance in generating returns relative to the company's total capital employed. The overall upward trend in the return on total capital indicates that Healthstream Inc is becoming more efficient in utilizing its capital resources to generate profits. However, it is important to monitor the trend over time to assess the company's sustained ability to generate returns on its total capital.