Verra Mobility Corp (VRRM)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	173,698	207,044	198,087	200,451	196,480	181,604	178,807	146,618	112,843	69,844	44,059	1,276	41,718	72,628	87,364	126,552	100,120	39,089	28,840	22,409
Long-term debt	US$ in thousands	1,029,110	1,030,350	1,129,690	1,140,710	1,190,040	1,204,010	1,205,170	1,206,280	1,206,800	965,362	966,066	965,945	832,941	833,624	834,317	835,507	837,686	858,189	859,133	859,768
Total stockholders’ equity	US$ in thousands	421,467	404,056	465,300	237,108	231,070	194,891	244,223	275,815	259,964	243,666	316,425	308,518	315,572	325,722	309,150	330,134	309,614	327,591	309,828	304,821
Return on total capital		11.97%	14.43%	12.42%	14.55%	13.83%	12.98%	12.34%	9.89%	7.69%	5.78%	3.44%	0.10%	3.63%	6.26%	7.64%	10.86%	8.73%	3.30%	2.47%	1.92%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $173,698K ÷ ($1,029,110K + $421,467K)
= 11.97%

Based on the data provided, Verra Mobility Corp's return on total capital has shown a consistent upward trend over the past eight quarters. The company's return on total capital has ranged from 9.51% in Q1 2022 to 14.38% in Q3 2023, indicating a steady improvement in the efficiency of capital utilization.

The consecutive increase in return on total capital reflects the company's ability to generate more profit relative to the total capital employed in its operations. This positive trend suggests that Verra Mobility Corp has been effectively utilizing its capital resources to generate returns for its shareholders.

Overall, the consistent improvement in return on total capital signifies the company's strong performance in terms of profitability and capital efficiency over the past eight quarters. This trend is an encouraging sign for investors and indicates the company's ability to generate value from its capital base.