Option Care Health Inc (OPCH)

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	330,588	323,216	315,308	406,051	407,436	404,140	387,396	276,872	260,665	240,419	227,776	212,418	171,958	155,287	138,183	115,855	110,755	103,893	42,512	24,150
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,404,240	1,426,230	1,411,430	1,429,150	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
Return on total capital		23.54%	22.66%	22.34%	28.41%	28.66%	28.06%	26.26%	20.51%	18.81%	17.98%	17.73%	17.39%	14.62%	14.15%	13.08%	11.38%	10.90%	10.46%	4.90%	2.77%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $330,588K ÷ ($—K + $1,404,240K)
= 23.54%

Option Care Health Inc's return on total capital has shown a positive trend over the past few years, starting at 2.77% as of March 31, 2020, and steadily increasing to 23.54% by December 31, 2024. This indicates that the company has been able to generate a higher return on the capital invested in its business over time.

The return on total capital reached its peak at 28.66% on December 31, 2023, before experiencing a slight decrease in the following periods. Despite the decrease in the most recent quarters of June 30, 2024, and September 30, 2024, the return on total capital remains relatively high compared to the starting point in 2020.

Overall, the increasing trend in return on total capital suggests that Option Care Health Inc has been efficiently utilizing its capital to generate returns for its investors and stakeholders. This positive performance may indicate effective management of assets and resources to drive profitability and create value for the company.