Kelly Services A Inc (KELYA)

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	28,100	27,200	3,800	5,200	-68,300	15,300	82,600	97,000	193,700	132,000	101,400	122,200	-103,000	-117,600	-156,000	-101,100	117,000	58,000	120,100	-7,800
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,253,700	1,235,700	1,241,900	1,247,800	1,254,200	1,252,700	1,276,900	1,273,500	1,336,200	1,274,100	1,243,800	1,215,700	1,203,000	1,166,100	1,145,600	1,100,100	1,264,500	1,247,800	1,268,200	1,177,800
Return on total capital		2.24%	2.20%	0.31%	0.42%	-5.45%	1.22%	6.47%	7.62%	14.50%	10.36%	8.15%	10.05%	-8.56%	-10.08%	-13.62%	-9.19%	9.25%	4.65%	9.47%	-0.66%

December 31, 2023 calculation

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

Kelly Services, Inc.'s return on total capital has shown a declining trend over the past eight quarters. The return on total capital decreased from 5.51% in Q4 2022 to 2.13% in Q4 2023. This downward trend indicates that the company's ability to generate profit from the total capital employed has weakened. It is vital for investors and stakeholders to monitor this trend closely to understand the company's financial performance and assess potential risks associated with its capital utilization.