Privia Health Group Inc (PRVA)
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 | 16,982 | 20,649 | -19,122 | -217,436 | 25,380 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 635,183 | 561,437 | 499,094 | 426,872 | 146,748 |
| Return on total capital | 2.67% | 3.68% | -3.83% | -50.94% | 17.29% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $16,982K ÷ ($—K + $635,183K)
= 2.67%
Based on the data provided, the return on total capital for Privia Health Group Inc has shown fluctuations over the years. In December 31, 2020, the return on total capital was relatively healthy at 17.29%, indicating that the company was generating a positive return on the total capital employed in its operations. However, in the subsequent years, the return on total capital experienced a significant decline.
By December 31, 2021, the return on total capital plummeted to -50.94%, reflecting a situation where the company's capital utilization led to a negative return, possibly indicating operational inefficiencies or financial challenges. The negative trend continued in December 31, 2022, with a return on total capital of -3.83%, further highlighting the company's struggle to generate a positive return on its total capital.
There was a slight improvement in the return on total capital by December 31, 2023, reaching 3.68%, although still relatively low compared to the initial figure in 2020. By December 31, 2024, the return on total capital improved marginally to 2.67%.
Overall, the analysis indicates that Privia Health Group Inc has faced challenges in effectively utilizing its total capital to generate returns for its investors during the period under review. Further investigation into the reasons behind the fluctuations in the return on total capital would be necessary to understand the factors impacting the company's financial performance.
Peer comparison
Dec 31, 2024