ManpowerGroup Inc (MAN)

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	306,000	255,800	581,700	585,400	187,600
Long-term debt	US$ in thousands	929,400	990,500	959,900	565,700	1,103,500
Total stockholders’ equity	US$ in thousands	2,125,200	2,223,300	2,447,300	2,521,700	2,441,000
Return on total capital		10.02%	7.96%	17.07%	18.96%	5.29%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $306,000K ÷ ($929,400K + $2,125,200K)
= 10.02%

ManpowerGroup Inc's return on total capital has shown significant fluctuations over the five-year period from 2020 to 2024.

In 2020, the return on total capital was 5.29%, indicating a relatively low profitability relative to the total capital employed in the business.

This was followed by a notable increase in 2021, where the return on total capital surged to 18.96%, showcasing a substantial improvement in the company's efficiency in generating profits from its total invested capital.

The trend continued positively in 2022, with a return on total capital of 17.07%, indicating sustained profitability and effective capital utilization by the company.

However, there was a decrease in profitability in 2023, with the return on total capital falling to 7.96%. This suggests a potential challenge in maintaining the high levels of profitability seen in the previous years.

In 2024, ManpowerGroup Inc managed to improve its return on total capital to 10.02%, although still lower than the peak in 2021. This indicates efforts to enhance profitability but also the need for ongoing strategic management of capital efficiency.

Overall, the fluctuation in return on total capital for ManpowerGroup Inc over the period reflects varying levels of profitability and efficiency in utilizing the total capital invested in the business.