Molina Healthcare Inc (MOH)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,573,000 | 1,173,000 | 995,000 | 1,063,000 | 1,059,000 |
| Long-term debt | US$ in thousands | 2,180,000 | 2,176,000 | 2,173,000 | 2,127,000 | 1,237,000 |
| Total stockholders’ equity | US$ in thousands | 4,215,000 | 2,964,000 | 2,630,000 | 2,096,000 | 1,960,000 |
| Return on total capital | 24.60% | 22.82% | 20.72% | 25.17% | 33.12% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,573,000K ÷ ($2,180,000K + $4,215,000K)
= 24.60%
Molina Healthcare Inc's return on total capital has shown fluctuations over the past five years. The ratio measures the company's ability to generate profits from the total capital employed in its operations. In 2023, the return on total capital decreased to 25.77% from 26.87% in the previous year, indicating a slight decline in efficiency in utilizing its capital to generate returns. However, the ratio remains relatively strong compared to 2021 and 2020 when it was 21.53% and 24.93% respectively. The highest return on total capital was observed in 2019 at 30.47%, showcasing a peak in capital efficiency. Overall, Molina Healthcare Inc has demonstrated varying levels of success in generating returns from its total capital over the years, with 2023 showing a minor dip from the previous year.
Peer comparison
Dec 31, 2023