Privia Health Group Inc (PRVA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 20,649 | -14,601 | -214,987 |
| Long-term debt | US$ in thousands | — | — | 31,688 |
| Total stockholders’ equity | US$ in thousands | 561,437 | 499,094 | 426,872 |
| Return on total capital | 3.68% | -2.93% | -46.88% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $20,649K ÷ ($—K + $561,437K)
= 3.68%
Return on total capital is a key financial metric that indicates the efficiency and profitability of a company in generating returns from its total capital employed, including both debt and equity.
In the case of Privia Health Group Inc, the return on total capital has shown significant improvement over the past three years. The company achieved a return on total capital of 3.68% in 2023, a positive turnaround from the negative returns of -3.83% in 2022 and -47.33% in 2021. This improvement suggests that Privia Health Group Inc has become more effective in utilizing its total capital to generate profits.
It is important to note that while the recent positive trend is encouraging, further analysis is needed to understand the reasons behind the fluctuations in return on total capital over the years. Factors such as changes in the company's operating performance, cost structure, financial leverage, and overall industry conditions may have influenced these results.
Overall, the upward trajectory in return on total capital for Privia Health Group Inc indicates a positive direction in terms of capital efficiency and profitability, which could be regarded as a favorable trend for the company's financial health and performance.
Peer comparison
Dec 31, 2023