Grand Canyon Education Inc (LOPE)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 275,399 | 259,708 | 240,121 | 334,890 | 337,542 |
| Long-term debt | US$ in thousands | — | — | — | 53,755 | 74,630 |
| Total stockholders’ equity | US$ in thousands | 783,853 | 718,014 | 637,619 | 1,045,050 | 1,574,330 |
| Return on total capital | 35.13% | 36.17% | 37.66% | 30.48% | 20.47% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $275,399K ÷ ($—K + $783,853K)
= 35.13%
Grand Canyon Education Inc's return on total capital has shown a positive trend over the past five years, increasing from 20.47% in December 2020 to 35.13% in December 2024. This indicates that the company has been utilizing its capital more efficiently to generate returns for its investors and stakeholders. The steady improvement in return on total capital suggests that Grand Canyon Education Inc has been able to enhance its operational performance and profitability over the years. This positive trend is a favorable indicator of the company's financial health and effective capital management strategies.
Peer comparison
Dec 31, 2024