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.