National HealthCare Corporation (NHC)
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 | 140,384 | 90,572 | 30,262 | 150,386 | 53,703 |
| Long-term debt | US$ in thousands | 129,500 | 0 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 980,161 | 908,752 | 874,276 | 903,004 | 795,177 |
| Return on total capital | 12.65% | 9.97% | 3.46% | 16.65% | 6.75% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $140,384K ÷ ($129,500K + $980,161K)
= 12.65%
National HealthCare Corporation's return on total capital has shown fluctuations over the past five years. In December 2020, the return on total capital was 6.75%, indicating the company generated a return of 6.75% on its total capital employed during that period.
By December 2021, the return on total capital significantly improved to 16.65%, reflecting a substantial increase in the company's profitability relative to its total capital. However, in December 2022, the return on total capital decreased to 3.46%, suggesting a decline in the company's efficiency in generating returns on its total capital.
In the following year, December 2023, the return on total capital recovered to 9.97%, indicating a moderate improvement in profitability and capital utilization. Finally, by December 2024, the return on total capital increased further to 12.65%, demonstrating continued growth in the company's ability to generate returns on its total capital.
Overall, while there have been fluctuations in National HealthCare Corporation's return on total capital over the years, the company has shown an overall positive trend, with the latest figure indicating a healthy return on its total capital employed.
Peer comparison
Dec 31, 2024