Aspen Technology Inc (AZPN)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-89,539	-122,763	-181,942	-192,094	-183,065	-152,893	-77,163
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	12,812,900	12,810,800	12,849,100	12,926,900	13,070,900	13,119,100	13,147,100	13,170,800	13,169,400	1,734,740
Return on total capital		-0.70%	-0.96%	-1.42%	-1.49%	-1.40%	-1.17%	-0.59%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-89,539K ÷ ($—K + $12,812,900K)
= -0.70%

Aspen Technology Inc's return on total capital has shown a negative trend over the past several quarters, indicating that the company is not effectively generating returns on its invested capital. The decreasing trend in return on total capital suggests that the company may be facing challenges in efficiently utilizing its capital to generate profits. The negative values indicate that the company is not earning sufficient returns in relation to the total capital employed in its operations. It is important for Aspen Technology Inc to closely evaluate and address the factors contributing to this trend in order to improve its financial performance and increase returns for its investors.