Robert Half International Inc (RHI)
Return on total capital
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 555,493 | 640,075 | 733,838 | 827,757 | 890,614 | 914,484 | 918,781 | 882,839 | 805,825 | 712,941 | 587,591 | 441,251 | 421,758 | 445,264 | 505,513 | 606,666 | 621,751 | 622,431 | 610,678 | 600,787 |
Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 0 | 62 | 122 | 181 | 239 | 295 | 350 | 404 |
Total stockholders’ equity | US$ in thousands | 1,588,350 | 1,579,970 | 1,625,270 | 1,598,480 | 1,568,560 | 1,490,920 | 1,467,670 | 1,452,770 | 1,381,050 | 1,316,040 | 1,259,250 | 1,197,700 | 1,205,290 | 1,194,030 | 1,156,710 | 1,129,920 | 1,143,680 | 1,111,830 | 1,109,230 | 1,077,030 |
Return on total capital | 34.97% | 40.51% | 45.15% | 51.78% | 56.78% | 61.34% | 62.60% | 60.77% | 58.35% | 54.17% | 46.66% | 36.84% | 34.99% | 37.29% | 43.70% | 53.68% | 54.35% | 55.97% | 55.04% | 55.76% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $555,493K ÷ ($—K + $1,588,350K)
= 34.97%
Robert Half Inc's return on total capital has demonstrated a downward trend over the past eight quarters, decreasing from 64.70% in Q2 2022 to 29.25% in Q4 2023. This decline may indicate deteriorating efficiency in generating profits relative to the total capital employed by the company. The decreasing trend suggests that the company may be facing challenges in optimizing its capital allocation and operational performance. Further analysis is recommended to identify the root causes of the declining return on total capital and to implement strategic measures to improve performance and sustainable profitability.
Peer comparison
Dec 31, 2023