Strategic Education Inc (STRA)

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	95,321	70,760	73,912	109,384	110,532
Long-term debt	US$ in thousands	61,400	101,396	141,630	141,823	0
Total stockholders’ equity	US$ in thousands	1,652,520	1,635,790	1,713,990	1,748,320	1,462,710
Return on total capital		5.56%	4.07%	3.98%	5.79%	7.56%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $95,321K ÷ ($61,400K + $1,652,520K)
= 5.56%

The return on total capital for Strategic Education Inc has shown a decreasing trend over the past five years. The ratio decreased from 9.06% in 2019 to 6.60% in 2023. This indicates that the company's ability to generate returns from its total invested capital has weakened over the period. It is important for the company to closely monitor and improve its capital utilization efficiency to enhance profitability and returns to shareholders.