Maximus Inc (MMS)

Return on total capital

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	488,499	294,794	325,898	408,530	289,121
Long-term debt	US$ in thousands	1,091,950	1,163,150	1,292,480	1,429,140	18,017
Total stockholders’ equity	US$ in thousands	1,842,820	1,667,840	1,549,370	1,480,330	1,241,820
Return on total capital		16.65%	10.41%	11.47%	14.04%	22.95%

September 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $488,499K ÷ ($1,091,950K + $1,842,820K)
= 16.65%

Maximus Inc's return on total capital has shown fluctuations over the past five years. In the most recent period as of September 30, 2024, the return on total capital was 16.65%, representing an improvement compared to the previous year's 10.41%. However, it is noteworthy that the current return on total capital is still lower than the levels seen in 2020 and 2021, which were 22.95% and 14.04%, respectively. This suggests that Maximus Inc's ability to generate returns from its total capital has varied over the years, indicating potential shifts in the company's operational efficiency or profitability. Further examination into the factors influencing these fluctuations would be necessary to fully understand Maximus Inc's performance in utilizing its total capital effectively.