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.
Peer comparison
Dec 31, 2023