Select Medical Holdings (SEM)
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 | 524,755 | 499,251 | 473,649 | 433,646 | 390,658 | 382,333 | 432,160 | 580,544 | 667,983 | 740,741 | 744,852 | 592,741 | 523,873 | 463,629 | 419,015 | 423,769 | 412,737 | 411,458 | 411,189 | 411,859 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,288,300 | 1,267,810 | 1,246,040 | 1,170,450 | 1,121,920 | 1,105,600 | 1,071,410 | 1,138,140 | 1,109,980 | 1,145,500 | 1,234,220 | 1,145,980 | 1,060,480 | 1,038,590 | 992,883 | 808,638 | 770,972 | 754,718 | 846,009 | 802,031 |
| Return on total capital | 40.73% | 39.38% | 38.01% | 37.05% | 34.82% | 34.58% | 40.34% | 51.01% | 60.18% | 64.67% | 60.35% | 51.72% | 49.40% | 44.64% | 42.20% | 52.41% | 53.53% | 54.52% | 48.60% | 51.35% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $524,755K ÷ ($—K + $1,288,300K)
= 40.73%
Select Medical Holdings Corporation's return on total capital has shown a generally positive trend over the past eight quarters, with a consistent increase from 7.97% in Q4 2022 to 11.93% in Q4 2023. This indicates that the company has been effectively utilizing its total capital to generate profits for its shareholders.
The return on total capital peaked at 11.93% in Q4 2023, reflecting the company's ability to generate higher returns relative to the combined capital invested in both debt and equity. This suggests efficient management of both financial resources and operational assets to generate earnings.
The quarterly fluctuations in return on total capital, such as the slight decrease from Q3 2023 (11.11%) to Q4 2023 (11.93%), may be influenced by various factors, including changes in the company's financial structure, profitability, and capital investments. Overall, the improving trend indicates a positive performance in utilizing capital efficiently to generate returns for stakeholders.
Peer comparison
Dec 31, 2023