Mednax Inc (MD)
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 | -54,649 | -226,456 | -221,545 | -15,627 | -9,958 | 174,425 | 182,517 | 189,512 | 142,943 | 158,392 | 173,053 | 170,228 | 217,738 | 191,935 | 198,898 | 187,906 | 170,708 | 193,932 | 185,278 | 200,168 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 764,938 | 732,492 | 706,461 | 856,196 | 849,061 | 967,985 | 942,375 | 909,771 | 891,632 | 858,667 | 845,430 | 877,076 | 896,692 | 845,466 | 808,906 | 766,759 | 747,717 | 804,761 | 826,570 | 1,487,400 |
| Return on total capital | -7.14% | -30.92% | -31.36% | -1.83% | -1.17% | 18.02% | 19.37% | 20.83% | 16.03% | 18.45% | 20.47% | 19.41% | 24.28% | 22.70% | 24.59% | 24.51% | 22.83% | 24.10% | 22.42% | 13.46% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-54,649K ÷ ($—K + $764,938K)
= -7.14%
Mednax Inc's return on total capital has shown fluctuations over the past few years. The company experienced a generally positive trend from March 2020 to June 2021, with the return on total capital increasing from 13.46% to 24.59%. This indicates that the company was efficiently utilizing its capital to generate returns for its stakeholders.
However, starting from September 2021, there was a slight decline in the return on total capital, which continued into December 2021. The return on total capital dropped to 22.70% by September 2021 and further decreased to 24.28% by December 2021. This downward trend intensified in the following periods, with the return on total capital plummeting to -1.17%, -1.83%, -31.36%, and -30.92% by December 2023.
The significant negative returns from June 2024 to December 2024, with returns at -31.36% and -30.92% respectively, suggest that the company may be facing challenges in effectively deploying its capital to generate profits.
Overall, it is important for Mednax Inc to closely monitor and assess its capital allocation strategies to reverse the declining trend in the return on total capital and ensure sustainable growth and profitability in the future.
Peer comparison
Dec 31, 2024