Option Care Health Inc (OPCH)

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	332,628	420,964	260,664	171,958	85,948
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,404,240	1,421,670	1,386,100	1,175,890	1,015,720
Return on total capital		23.69%	29.61%	18.81%	14.62%	8.46%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $332,628K ÷ ($—K + $1,404,240K)
= 23.69%

Option Care Health Inc's return on total capital has shown a positive trend over the years, indicating an improvement in the company's efficiency in generating returns relative to its total capital employed.

As of December 31, 2020, the return on total capital was 8.46%, which increased to 14.62% by December 31, 2021, reflecting a significant improvement. This uptrend continued in the following years with returns of 18.81% on December 31, 2022, 29.61% on December 31, 2023, and 23.69% on December 31, 2024.

The substantial increase in the return on total capital from 2020 to 2024 suggests that Option Care Health Inc has been effectively utilizing its capital to generate higher returns for its investors and stakeholders. This trend indicates improved operational efficiency and profitability, which may be attributed to effective cost management, strategic investments, or increased revenue generation.

Overall, the rising trend in return on total capital demonstrates the company's ability to generate increasing returns on the total capital employed, which is a positive indicator of its financial performance and value creation for shareholders.