Strategic Education Inc (STRA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 157,276 | 113,121 | 73,992 | 110,585 | 135,536 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,662,500 | 1,652,520 | 1,635,790 | 1,713,990 | 1,748,320 |
| Return on total capital | 9.46% | 6.85% | 4.52% | 6.45% | 7.75% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $157,276K ÷ ($—K + $1,662,500K)
= 9.46%
Based on the provided data, Strategic Education Inc's return on total capital has fluctuated over the past five years. As of December 31, 2020, the return on total capital was 7.75%. However, it decreased to 6.45% by December 31, 2021, and further declined to 4.52% by December 31, 2022.
There was a rebound in the return on total capital to 6.85% by December 31, 2023, followed by a notable increase to 9.46% by December 31, 2024. This improvement in 2024 indicates a positive trend and potentially enhanced efficiency in utilizing its total capital to generate returns.
Overall, despite the fluctuations, Strategic Education Inc managed to achieve a relatively stable return on total capital over the five-year period, with a notable improvement in the most recent financial year. Continued monitoring and analysis of this metric will be essential to assess the company's capital efficiency and long-term financial performance.
Peer comparison
Dec 31, 2024