ManpowerGroup Inc (MAN)

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	255,800	396,100	487,800	560,900	581,700	647,500	636,500	625,700	585,400	557,100	468,200	248,300	187,600	240,900	396,000	658,200	724,300	750,600	749,000	747,900
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	2,402,700	2,439,200	2,498,400	2,447,300	2,406,100	2,435,200	2,545,500	2,521,700	2,473,400	2,387,100	2,366,300	2,441,000	2,588,700	2,526,000	2,620,200	2,743,000	2,698,100	2,632,500	2,575,600
Return on total capital		7.96%	16.49%	20.00%	22.45%	17.07%	26.91%	26.14%	24.58%	18.96%	22.52%	19.61%	10.49%	5.29%	9.31%	15.68%	25.12%	19.29%	27.82%	28.45%	29.04%

December 31, 2023 calculation

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

ManpowerGroup's return on total capital shows a declining trend over the past eight quarters. The return on total capital decreased from 19.61% in Q3 2022 to 9.64% in Q4 2023. This indicates a decrease in the efficiency of utilizing the company's total capital to generate profits. The company experienced a peak return on total capital of 16.94% in Q4 2022 but has since seen a consistent decrease in this metric.

Overall, ManpowerGroup's return on total capital has fluctuated within the range of 9.64% to 19.61% over the period analyzed. The declining trend in this ratio may require further investigation into the factors impacting the company's profitability and capital utilization efficiency.