Grand Canyon Education Inc (LOPE)

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	259,708	240,121	334,890	337,542	328,813
Long-term debt	US$ in thousands	—	—	53,755	74,630	107,774
Total stockholders’ equity	US$ in thousands	718,014	637,619	1,045,050	1,574,330	1,443,430
Return on total capital		36.17%	37.66%	30.48%	20.47%	21.20%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $259,708K ÷ ($—K + $718,014K)
= 36.17%

Grand Canyon Education Inc's return on total capital has fluctuated over the past five years. The ratio stood at 34.71% at the end of 2023, showing a slight decrease from 37.25% in 2022 but still indicating a strong performance in generating returns from both debt and equity capital. The company's return on total capital has shown an upward trend since 2019, when it was at 16.98%. This improvement suggests that Grand Canyon Education has been effectively utilizing its capital to generate profits and create value for its stakeholders. Overall, the company's ability to maintain a high return on total capital demonstrates its efficiency in deploying resources to generate earnings.