Kelly Services A Inc (KELYA)

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	28,100	-68,300	193,700	-103,000	117,000
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,253,700	1,254,200	1,336,200	1,203,000	1,264,500
Return on total capital		2.24%	-5.45%	14.50%	-8.56%	9.25%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $28,100K ÷ ($—K + $1,253,700K)
= 2.24%

To analyze the return on total capital of Kelly Services, Inc. over the past five years, we observe a fluctuating trend. The return on total capital was 2.13% at the end of 2023, exhibiting a decrease compared to the previous year's figure of 5.51%. This decline indicates a less efficient utilization of both debt and equity capital to generate profits.

In 2022, the return on total capital was 4.04%, showing a moderate improvement from the prior year. However, this improvement was followed by a lower figure of 1.89% in 2021, suggesting a decrease in the company's profitability concerning the total invested capital.

The highest return on total capital in the last five years was reported at 6.45% at the end of 2019, indicating a more effective capital utilization and higher profitability compared to the subsequent years. Overall, the data reveals fluctuations in Kelly Services, Inc.'s ability to generate returns relative to the total capital employed over the analyzed period.