Robert Half International Inc (RHI)

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	336,770	555,493	890,614	805,824	421,758
Long-term debt	US$ in thousands	—	—	—	—	0
Total stockholders’ equity	US$ in thousands	1,378,000	1,588,350	1,568,560	1,381,050	1,205,290
Return on total capital		24.44%	34.97%	56.78%	58.35%	34.99%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $336,770K ÷ ($—K + $1,378,000K)
= 24.44%

Based on the provided data, Robert Half International Inc's return on total capital has shown fluctuating trends over the past five years. The return on total capital was 34.99% as of December 31, 2020, and increased significantly to 58.35% by December 31, 2021. The company continued to perform well in 2022 with a return on total capital of 56.78%.

However, there was a slight decline in the return on total capital to 34.97% by the end of 2023. The trend reversed further in 2024, with the return on total capital dropping to 24.44%.

The fluctuation in return on total capital indicates varying levels of efficiency in generating profits relative to the total capital employed by the company. It may be important for stakeholders to further analyze the factors contributing to these fluctuations to make informed decisions regarding the company's financial performance and strategy.