US Physicalrapy Inc (USPH)
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 | 52,061 | 56,801 | 70,649 | 52,413 | 55,765 |
| Long-term debt | US$ in thousands | 138,991 | 175,831 | 117,587 | 16,596 | 50,361 |
| Total stockholders’ equity | US$ in thousands | 476,194 | 315,793 | 295,606 | 276,160 | 240,257 |
| Return on total capital | 8.46% | 11.55% | 17.10% | 17.90% | 19.19% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $52,061K ÷ ($138,991K + $476,194K)
= 8.46%
U.S. Physical Therapy, Inc.'s return on total capital has shown a declining trend over the past five years. The ratio decreased from 23.15% in 2019 to 11.32% in 2023. This indicates a decrease in the company's ability to generate profits from the capital invested in the business over this period.
The decline in the return on total capital could be attributed to various factors such as increased operational expenses, lower efficiency in asset utilization, or a decrease in profitability. It is essential for the company to analyze the underlying reasons for this downward trend and take necessary steps to improve its capital efficiency and profitability in the future.
Peer comparison
Dec 31, 2023