Perdoceo Education Corp (PRDO)
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 | 200,827 | 192,525 | 132,631 | 149,016 | 143,546 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 959,536 | 841,421 | 725,845 | 650,110 | 555,907 |
| Return on total capital | 20.93% | 22.88% | 18.27% | 22.92% | 25.82% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $200,827K ÷ ($—K + $959,536K)
= 20.93%
Perdoceo Education Corp's return on total capital has shown fluctuations over the years based on the provided data. As of December 31, 2020, the return on total capital stood at a robust 25.82%, indicating that the company was efficiently utilizing its total capital to generate profits.
However, by the end of December 31, 2022, the return on total capital had decreased to 18.27%, which may suggest a less efficient use of the company's capital during that period.
Subsequently, the return on total capital increased to 22.88% by December 31, 2023, showing a recovery in capital efficiency.
As of the most recent data point on December 31, 2024, the return on total capital stood at 20.93%, indicating a moderate level of profitability relative to the total capital employed.
Overall, the trend in Perdoceo Education Corp's return on total capital demonstrates some fluctuations, with variations in capital efficiency over the years reviewed. Further analysis would require additional information and context to fully assess the company's capital management effectiveness.
Peer comparison
Dec 31, 2024