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.