Perdoceo Education Corp (PRDO)

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	190,325	168,687	164,428	166,443	162,441	166,390	147,529	132,844	132,631	141,767	150,304	152,092	149,016	151,359	145,572	148,114	145,412	142,135	141,455	104,772
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	959,536	935,431	899,524	866,106	841,421	829,659	792,432	761,172	725,845	706,222	692,760	678,380	650,110	645,385	613,612	588,345	555,907	521,671	478,684	445,143
Return on total capital		19.84%	18.03%	18.28%	19.22%	19.31%	20.06%	18.62%	17.45%	18.27%	20.07%	21.70%	22.42%	22.92%	23.45%	23.72%	25.17%	26.16%	27.25%	29.55%	23.54%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $190,325K ÷ ($—K + $959,536K)
= 19.84%

Perdoceo Education Corp's return on total capital has shown some fluctuations over the specified time period. The ratio ranged from a high of 29.55% at June 30, 2020, to a low of 17.45% at March 31, 2023. Overall, the trend indicates a gradual decline in return on total capital from an initial high of 29.55% to 19.84% at December 31, 2024.

This indicates that the company's ability to generate returns from its total capital employed has weakened over time. It would be important for Perdoceo Education Corp to closely monitor and assess the factors impacting its return on total capital, such as operational efficiency, profitability levels, and capital structure, in order to improve and sustain its financial performance in the long term.