Perdoceo Education Corp (PRDO)
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 | 192,525 | 134,669 | 149,987 | 146,907 | 92,577 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 841,421 | 725,845 | 650,110 | 555,907 | 431,295 |
| Return on total capital | 22.88% | 18.55% | 23.07% | 26.43% | 21.46% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $192,525K ÷ ($—K + $841,421K)
= 22.88%
Perdoceo Education Corporation's return on total capital has shown fluctuations over the past five years. The company's return on total capital was 19.58% in 2023, an increase from 18.27% in 2022 but lower than the 22.92% in 2021. The peak return on total capital was 25.82% in 2020, followed by a decrease to 20.05% in 2019.
The trend indicates some volatility in the company's ability to generate returns on the total capital employed in its operations. It is important for investors and stakeholders to monitor this metric closely to assess the company's efficiency in generating profits from its overall capital base. Further analysis and investigation into the factors influencing these fluctuations may provide insights into the company's financial performance and management of capital resources.
Peer comparison
Dec 31, 2023