Rollins Inc (ROL)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 657,224 | 645,670 | 630,998 | 603,410 | 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 |
| Long-term debt | US$ in thousands | 395,310 | 445,176 | 502,043 | 510,909 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,330,590 | 1,317,780 | 1,236,060 | 1,167,500 | 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 |
| Return on total capital | 38.08% | 36.62% | 36.30% | 35.95% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $657,224K ÷ ($395,310K + $1,330,590K)
= 38.08%
Rollins Inc has demonstrated a fluctuating trend in its return on total capital over the reporting periods. The return on total capital started at 24.21% in March 31, 2020, and showed a gradual increase over the following periods, reaching a peak of 89.82% in September 30, 2021. This significant growth indicates that Rollins Inc was efficiently utilizing its capital to generate profits during this period.
However, there was a notable decline in the return on total capital in the subsequent periods, dropping to 31.92% in March 31, 2022, before gradually increasing again. The return on total capital stabilized around the mid-30% range from June 30, 2023, to December 31, 2024, indicating a level of consistency in the company's capital efficiency.
Overall, the analysis of Rollins Inc's return on total capital suggests that the company has managed its capital effectively to generate returns for its stakeholders. The fluctuations in the ratio reflect changes in the company's financial performance and efficiency in utilizing its capital resources.
Peer comparison
Dec 31, 2024