Molina Healthcare Inc (MOH)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,707,000 | 1,573,000 | 1,173,000 | 995,000 | 1,063,000 |
| Long-term debt | US$ in thousands | 2,923,000 | 2,180,000 | 2,176,000 | 2,173,000 | 2,127,000 |
| Total stockholders’ equity | US$ in thousands | 4,496,000 | 4,215,000 | 2,964,000 | 2,630,000 | 2,096,000 |
| Return on total capital | 23.01% | 24.60% | 22.82% | 20.72% | 25.17% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,707,000K ÷ ($2,923,000K + $4,496,000K)
= 23.01%
To analyze Molina Healthcare Inc's return on total capital over the years, the following observations can be made:
- The return on total capital for Molina Healthcare Inc has shown some fluctuations over the period from December 31, 2020, to December 31, 2024.
- The return on total capital decreased from 25.17% in December 31, 2020, to 20.72% in December 31, 2021.
- However, there was an improvement in the return on total capital in the subsequent years, reaching 22.82% in December 31, 2022, 24.60% in December 31, 2023, and 23.01% in December 31, 2024.
- Despite some fluctuations, Molina Healthcare Inc's return on total capital remained relatively strong throughout the period.
Overall, Molina Healthcare Inc has managed to maintain a solid return on total capital over the years, showing the company's ability to generate earnings relative to the total capital invested.
Peer comparison
Dec 31, 2024