Verra Mobility Corp (VRRM)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 143,488 241,867 233,824 228,866 224,614 208,225 194,550 183,500 165,405 163,134 168,071 154,416 119,773 89,502 59,317 17,945 42,920 59,835 78,971 109,818
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 265,125 486,546 438,627 448,995 421,467 404,056 465,300 237,108 231,070 194,891 244,223 275,815 259,964 243,666 316,425 308,518 346,438 343,922 331,750 344,400
Return on total capital 54.12% 49.71% 53.31% 50.97% 53.29% 51.53% 41.81% 77.39% 71.58% 83.71% 68.82% 55.99% 46.07% 36.73% 18.75% 5.82% 12.39% 17.40% 23.80% 31.89%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $143,488K ÷ ($—K + $265,125K)
= 54.12%

Verra Mobility Corp's return on total capital has demonstrated fluctuations over the periods from March 31, 2020, to December 31, 2024. The company's return on total capital was consistently high during the earlier periods, with a peak of 83.71% on September 30, 2022.

Subsequently, the return on total capital experienced a decline in the following quarters, dipping to 41.81% on June 30, 2023. However, the company managed to improve its performance, with the return on total capital rebounding to 77.39% on March 31, 2024.

Despite the fluctuations, Verra Mobility Corp's return on total capital remained relatively strong and above average, indicating efficient utilization of both equity and debt to generate profits. Investors and stakeholders may view the company favorably for its ability to generate returns on the total capital employed in its operations.