Verra Mobility Corp (VRRM)

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 153,010 174,458 197,525 112,583 41,718
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 265,125 421,467 231,070 259,964 346,438
Return on total capital 57.71% 41.39% 85.48% 43.31% 12.04%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $153,010K ÷ ($—K + $265,125K)
= 57.71%

The return on total capital for Verra Mobility Corp has shown significant fluctuations over the years based on the provided data. As of December 31, 2020, the return on total capital stood at 12.04%, indicating a moderate performance. However, there was a substantial increase by December 31, 2021, with the return on total capital jumping to 43.31%, reflecting improved capital efficiency.

By December 31, 2022, Verra Mobility Corp achieved an impressive return on total capital of 85.48%, signaling a remarkable ability to generate profits from the total capital employed. The following year, by December 31, 2023, the return on total capital decreased to 41.39%, suggesting a slight dip in capital efficiency compared to the previous year.

By the end of December 31, 2024, the return on total capital was recorded at 57.71%, showcasing a solid performance in generating returns relative to the total capital invested. Overall, the fluctuations in the return on total capital for Verra Mobility Corp indicate varying levels of capital efficiency and profitability over the analyzed years.