Select Medical Holdings (SEM)
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 | 524,755 | 390,658 | 667,983 | 523,873 | 412,737 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,288,300 | 1,121,920 | 1,109,980 | 1,060,480 | 770,972 |
| Return on total capital | 40.73% | 34.82% | 60.18% | 49.40% | 53.53% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $524,755K ÷ ($—K + $1,288,300K)
= 40.73%
Looking at the data provided for Select Medical Holdings Corporation's return on total capital over the past five years, there appears to be some fluctuation. The return on total capital was 11.93% in 2023, which represents an improvement compared to the previous year where it was 7.97%. In 2021, the return on total capital was 12.99%, showing a slight increase from the year before. In 2020 and 2019, the return on total capital was relatively stable at 11.36% and 11.79%, respectively.
Overall, the return on total capital for Select Medical Holdings Corporation has shown variability over the period under consideration. It is important for the company to continue monitoring and managing its capital efficiency to ensure sustainable and consistent returns for its investors and stakeholders.
Peer comparison
Dec 31, 2023