US Physicalrapy Inc (USPH)
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 | 63,213 | 52,061 | 56,801 | 70,649 | 52,413 |
| Long-term debt | US$ in thousands | 142,530 | 138,991 | 175,831 | 117,587 | 16,596 |
| Total stockholders’ equity | US$ in thousands | 488,929 | 476,194 | 315,793 | 295,606 | 276,160 |
| Return on total capital | 10.01% | 8.46% | 11.55% | 17.10% | 17.90% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $63,213K ÷ ($142,530K + $488,929K)
= 10.01%
US Physicalrapy Inc's return on total capital has shown a downward trend over the past five years, decreasing from 17.90% as of December 31, 2020, to 10.01% as of December 31, 2024. This indicates a decrease in the company's ability to generate profits from the total capital employed in its operations. The declining trend raises concerns about the efficiency of the company in utilizing its capital effectively to generate returns for its investors. It may be necessary for the company to review its capital allocation strategies and operational efficiency to improve its return on total capital in the future.
Peer comparison
Dec 31, 2024