Grand Canyon Education Inc (LOPE)

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	259,708	250,944	242,924	239,081	240,121	258,286	282,594	313,664	334,890	337,006	342,546	340,716	337,542	322,443	332,535	337,250	328,813	325,995	292,837	284,748
Long-term debt	US$ in thousands	—	—	—	—	—	70,760	50,354	51,866	53,755	—	58,057	66,344	74,630	82,916	91,202	99,488	107,774	211,060	207,888	199,994
Total stockholders’ equity	US$ in thousands	718,014	650,530	645,425	659,250	637,619	591,556	606,638	706,437	1,045,050	1,400,780	1,542,680	1,588,680	1,574,330	1,520,980	1,489,390	1,448,010	1,443,430	1,381,830	1,327,810	1,272,870
Return on total capital		36.17%	38.58%	37.64%	36.27%	37.66%	39.00%	43.01%	41.36%	30.48%	24.06%	21.40%	20.59%	20.47%	20.10%	21.04%	21.79%	21.20%	20.47%	19.07%	19.33%

December 31, 2023 calculation

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

Grand Canyon Education Inc's return on total capital has shown a relatively stable performance over the past eight quarters, ranging from 34.71% to 42.70%. The company's return on total capital peaked at 42.70% in Q3 2022 and has since fluctuated within a narrow range. The consistent high returns indicate that Grand Canyon Education Inc has been efficiently utilizing its capital to generate profits. However, a slight downward trend is noticeable in the most recent quarters, with Q4 2023 showing a return of 34.71%, down from 37.25% in the previous quarter. This could indicate a potential decline in the company's ability to generate profits relative to the total capital employed. Further analysis of the underlying factors contributing to this trend would be necessary to assess the sustainability of Grand Canyon Education Inc's return on total capital in the future.