Verra Mobility Corp (VRRM)
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 | 173,698 | 196,480 | 112,843 | 41,718 | 91,386 |
| Long-term debt | US$ in thousands | 1,029,110 | 1,190,040 | 1,206,800 | 832,941 | 837,686 |
| Total stockholders’ equity | US$ in thousands | 421,467 | 231,070 | 259,964 | 315,572 | 309,614 |
| Return on total capital | 11.97% | 13.83% | 7.69% | 3.63% | 7.97% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $173,698K ÷ ($1,029,110K + $421,467K)
= 11.97%
Verra Mobility Corp's return on total capital has exhibited fluctuations over the last five years. The return on total capital increased from 8.49% in 2019 to 12.94% in 2023, indicating an improvement in the company's efficiency in generating profits relative to the total capital employed. This rise suggests that Verra Mobility Corp has been able to utilize its capital more effectively in recent years.
Furthermore, the return on total capital was relatively stable between 2020 and 2022, ranging from 3.27% to 11.41%. Although there was a slight dip in 2021, the company managed to rebound in the subsequent year. This consistency in the return on total capital signifies a degree of financial stability and operational effectiveness within the organization.
Overall, the trend of increasing return on total capital over the period indicates that Verra Mobility Corp has been successful in enhancing its profitability in proportion to the total capital invested, reflecting positively on its financial performance and efficiency in utilizing resources.
Peer comparison
Dec 31, 2023