Rollins Inc (ROL)
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 | 583,226 | 564,070 | 532,350 | 512,238 | 493,388 | 472,508 | 453,951 | 452,828 | 447,636 | 1,033,741 | 879,106 | 700,753 | 485,811 | 295,264 | 276,464 | 268,115 | 292,562 | 21,356 | 29,701 | 46,213 |
| Long-term debt | US$ in thousands | 490,776 | 596,642 | 337,509 | 62,432 | 39,898 | 109,878 | 219,858 | 280,783 | 136,250 | 49,250 | 69,250 | 96,250 | 185,812 | 154,375 | 242,500 | 307,300 | 279,000 | 313,500 | 335,375 | — |
| Total stockholders’ equity | US$ in thousands | 1,155,570 | 1,102,840 | 1,342,220 | 1,287,750 | 1,267,200 | 1,229,680 | 1,177,380 | 1,138,020 | 1,111,220 | 1,101,630 | 1,050,680 | 988,935 | 964,651 | 932,716 | 862,830 | 800,371 | 833,109 | 806,897 | 752,264 | 719,124 |
| Return on total capital | 35.43% | 33.19% | 31.69% | 37.94% | 37.75% | 35.27% | 32.49% | 31.92% | 35.88% | 89.82% | 78.50% | 64.57% | 42.23% | 27.16% | 25.01% | 24.21% | 26.31% | 1.91% | 2.73% | 6.43% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $583,226K ÷ ($490,776K + $1,155,570K)
= 35.43%
Rollins, Inc. has consistently demonstrated strong performance in terms of return on total capital over the past eight quarters. The return on total capital ranged from 31.60% to 38.07%, showing stable and robust financial efficiency. This indicates that the company has been effectively utilizing its total capital to generate profits for its stakeholders. The upward trend from Q2 2022 to Q1 2023 highlights an improvement in capital efficiency during that period. Overall, the consistently high return on total capital suggests that Rollins, Inc. has been successful in generating substantial returns relative to its total invested capital.
Peer comparison
Dec 31, 2023