Molina Healthcare Inc (MOH)
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 | 1,707,000 | 1,643,000 | 1,535,000 | 1,544,000 | 1,573,000 | 1,362,000 | 1,338,000 | 1,256,000 | 1,173,000 | 1,234,000 | 1,120,000 | 1,032,000 | 995,000 | 910,000 | 978,000 | 1,124,000 | 1,063,000 | 1,224,000 | 1,190,000 | 1,050,000 |
| Long-term debt | US$ in thousands | 2,923,000 | 2,332,000 | 2,181,000 | 2,180,000 | 2,180,000 | 2,179,000 | 2,178,000 | 2,177,000 | 2,176,000 | 2,175,000 | 2,175,000 | 2,174,000 | 2,173,000 | 2,130,000 | 2,129,000 | 2,128,000 | 2,127,000 | 1,813,000 | 1,812,000 | 1,596,000 |
| Total stockholders’ equity | US$ in thousands | 4,496,000 | 4,770,000 | 4,843,000 | 4,493,000 | 4,215,000 | 3,879,000 | 3,621,000 | 3,288,000 | 2,964,000 | 3,041,000 | 2,830,000 | 2,794,000 | 2,630,000 | 2,518,000 | 2,370,000 | 2,164,000 | 2,096,000 | 2,201,000 | 1,996,000 | 1,647,000 |
| Return on total capital | 23.01% | 23.13% | 21.85% | 23.14% | 24.60% | 22.48% | 23.07% | 22.98% | 22.82% | 23.66% | 22.38% | 20.77% | 20.72% | 19.58% | 21.74% | 26.19% | 25.17% | 30.49% | 31.25% | 32.38% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,707,000K ÷ ($2,923,000K + $4,496,000K)
= 23.01%
Molina Healthcare Inc's return on total capital has shown fluctuations over the periods analyzed. The ratio indicates the company's ability to generate profits from the total capital employed, including both debt and equity.
From March 31, 2020, Molina Healthcare Inc's return on total capital was strong at 32.38%. The ratio remained relatively high throughout the following quarters, indicating efficient capital utilization. However, there was a slight decline to 25.17% by December 31, 2020.
The trend continued to fluctuate in the subsequent periods, with some moderate declines and recoveries. The return on total capital reached a low point of 19.58% on September 30, 2021, but then gradually improved to 23.66% by September 30, 2022.
Overall, Molina Healthcare Inc's return on total capital ranged between 19.58% and 32.38% during the period under review. The ratio indicates the company's ability to generate returns for both debt and equity providers, showing a combination of profitability and efficient use of capital. However, it is essential for the company to monitor and manage this ratio effectively to ensure sustained financial performance and value creation for its stakeholders.
Peer comparison
Dec 31, 2024