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.