Rollins Inc (ROL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 583,226 | 493,388 | 447,636 | 376,088 | 317,394 |
| Long-term debt | US$ in thousands | 490,776 | 39,898 | 136,250 | 185,812 | 279,000 |
| Total stockholders’ equity | US$ in thousands | 1,155,570 | 1,267,200 | 1,111,220 | 964,651 | 833,109 |
| Return on total capital | 35.43% | 37.75% | 35.88% | 32.69% | 28.54% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $583,226K ÷ ($490,776K + $1,155,570K)
= 35.43%
Rollins, Inc.'s return on total capital has been consistently strong over the past five years, with a gradual increase in performance. The company achieved a return on total capital of 35.74% at the end of 2023, exhibiting a slight decrease from the previous year but remaining at an impressive level. This indicates that Rollins, Inc. has been effectively utilizing its total capital to generate profits for its shareholders.
The trend of increasing return on total capital from 2019 to 2023 reflects the company's efficient allocation of resources and ability to generate profits relative to the total capital invested. The company appears to have a robust operational structure and effective management in place, resulting in a higher return on investment for its capital providers.
Overall, Rollins, Inc.'s consistently strong return on total capital indicates that the company is effectively leveraging its total capital to drive profitability and create value for its stakeholders.
Peer comparison
Dec 31, 2023