ManpowerGroup Inc (MAN)

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	255,800	581,700	585,400	187,600	644,900
Long-term debt	US$ in thousands	990,500	959,900	565,700	1,103,500	1,012,400
Total stockholders’ equity	US$ in thousands	2,223,300	2,447,300	2,521,700	2,441,000	2,743,000
Return on total capital		7.96%	17.07%	18.96%	5.29%	17.17%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $255,800K ÷ ($990,500K + $2,223,300K)
= 7.96%

ManpowerGroup's return on total capital has exhibited fluctuations over the past five years. In 2023, the return on total capital decreased to 9.64% from 16.94% in 2022, indicating a decrease in the efficiency of capital utilization. This decline contrasts with the trend observed in the previous year, where the return on total capital was 16.08% in 2021, rebounding from a lower figure of 7.14% in 2020.

The company's performance in 2019, with a return on total capital of 16.90%, was comparable to the level observed in 2022. However, the recent decrease in 2023 raises concerns about the company's ability to generate returns on the total capital employed.

Further analysis would be required to understand the underlying factors contributing to the fluctuation in ManpowerGroup's return on total capital and to assess the sustainability of its capital utilization efficiency.