Insight Enterprises Inc (NSIT)
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 | 418,978 | 413,930 | 333,073 | 270,046 | 240,194 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,735,730 | 1,638,070 | 1,509,230 | 1,342,430 | 1,160,320 |
| Return on total capital | 24.14% | 25.27% | 22.07% | 20.12% | 20.70% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $418,978K ÷ ($—K + $1,735,730K)
= 24.14%
Insight Enterprises Inc.'s return on total capital has shown a generally positive trend over the past five years. The company's return on total capital was 16.19% as of December 31, 2023, compared to 18.45% in the previous year. Despite a slight decrease from the previous year, the return on total capital remains above 15%, indicating efficient utilization of both equity and debt in generating profits.
The company's return on total capital has been consistently above 15% since 2020, showcasing a strong performance in utilizing its capital to generate returns for shareholders. This steady trend indicates efficient capital allocation and effective management of the company's resources to generate profits.
Overall, Insight Enterprises Inc.'s return on total capital reflects a company that has been able to consistently generate attractive returns for its investors over the past five years by efficiently utilizing its total capital.
Peer comparison
Dec 31, 2023