ManpowerGroup Inc (MAN)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	306,000	198,300	197,300	203,800	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
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	2,176,100	2,136,900	2,176,700	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
Return on total capital		10.02%	9.11%	9.23%	9.36%	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%

December 31, 2024 calculation

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

ManpowerGroup Inc's return on total capital has shown fluctuating trends over the past several quarters. The ratio stood at 25.12% as of March 31, 2020, indicating the company generated a return of 25.12% on its total capital during that period.

Subsequently, the return on total capital decreased to 15.68% as of June 30, 2020, and further dropped to 5.29% by December 31, 2020. This declining trend continued into the first quarter of 2021, with a return of 10.49%.

However, there was a notable improvement in the second quarter of 2021, with a return of 19.61%, followed by a further increase to 22.52% by September 30, 2021. The ratio peaked at 26.91% on September 30, 2022, indicating strong performance in generating returns on total capital.

Subsequently, there was a slight decline in the ratio to 7.96% by December 31, 2023, before recovering to 10.02% by December 31, 2024.

Overall, while there have been fluctuations in ManpowerGroup Inc's return on total capital, the company has generally shown the ability to generate satisfactory returns on its total capital investment over the periods analyzed. It's essential for investors and stakeholders to monitor these trends to assess the company's efficiency in utilizing its capital resources effectively.