Strategic Education Inc (STRA)

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	95,321	68,744	50,922	55,970	70,760	70,977	70,518	75,353	73,912	49,656	57,730	77,425	109,384	142,989	147,567	128,768	110,532	92,194	15,067	-7,737
Long-term debt	US$ in thousands	61,400	61,247	101,309	101,344	101,396	141,234	141,437	141,743	141,630	141,593	141,748	141,798	141,823	—	—	—	0	—	—	—
Total stockholders’ equity	US$ in thousands	1,652,520	1,594,750	1,598,610	1,610,430	1,635,790	1,598,480	1,651,920	1,724,310	1,713,990	1,695,060	1,733,180	1,735,920	1,748,320	1,705,060	1,484,550	1,459,150	1,462,710	1,444,660	1,437,880	1,423,440
Return on total capital		5.56%	4.15%	3.00%	3.27%	4.07%	4.08%	3.93%	4.04%	3.98%	2.70%	3.08%	4.12%	5.79%	8.39%	9.94%	8.82%	7.56%	6.38%	1.05%	-0.54%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 fluctuated over the past eight quarters, ranging from 3.58% to 6.60%. The trend indicates variability in the company's efficiency in generating returns relative to its total capital employed. The higher return on total capital in Q4 2023 compared to the previous quarters may suggest improved performance in utilizing its capital resources effectively. However, it is important to further investigate the factors contributing to these fluctuations to assess the sustainability and long-term profitability of the company.