Option Care Health Inc (OPCH)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	409,990	398,160	382,409	274,104	259,555	241,281	229,737	219,095	183,479	164,299	136,725	111,207	102,527	75,245	30,534	-1,140	-4,447	-5,690	24,778	41,115
Long-term debt	US$ in thousands	1,056,650	1,057,020	1,057,390	1,057,790	1,058,200	1,058,610	1,059,020	1,059,450	1,059,900	1,117,820	1,119,460	1,121,140	1,115,100	1,162,840	1,275,380	1,276,330	1,277,250	1,259,460	200,083	511,818
Total stockholders’ equity	US$ in thousands	1,421,670	1,440,080	1,475,380	1,350,220	1,386,100	1,337,340	1,284,990	1,221,760	1,175,890	1,097,480	1,056,610	1,018,080	1,015,720	993,496	867,966	870,493	906,827	921,682	584,146	597,171
Return on total capital		16.54%	15.94%	15.10%	11.38%	10.62%	10.07%	9.80%	9.60%	8.21%	7.42%	6.28%	5.20%	4.81%	3.49%	1.42%	-0.05%	-0.20%	-0.26%	3.16%	3.71%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $409,990K ÷ ($1,056,650K + $1,421,670K)
= 16.54%

Option Care Health Inc.'s return on total capital has shown a consistent upward trend over the past eight quarters, indicating a positive performance in utilizing its capital effectively to generate returns for its stakeholders. The company's return on total capital increased from 9.62% in Q1 2022 to 12.89% in Q4 2023, reflecting an improvement in efficiency and profitability.

The steady increase in return on total capital suggests that Option Care Health Inc. has been successful in managing its capital investments efficiently and generating higher returns on its total capital employed. This trend is favorable as it indicates the company's ability to maximize the use of its financial resources to create value for its investors.

Overall, the improving trend in return on total capital reflects positively on Option Care Health Inc.'s financial performance and indicates an effective utilization of capital to drive profitability and growth.