Blackline Inc (BL)
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 | 133,456 | 66,407 | -41,561 | -44,926 | -15,389 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 446,669 | 260,881 | 111,868 | 325,036 | 422,070 |
| Return on total capital | 29.88% | 25.45% | -37.15% | -13.82% | -3.65% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $133,456K ÷ ($—K + $446,669K)
= 29.88%
The Return on Total Capital for Blackline Inc has shown a fluctuating trend over the past five years. In December 31, 2020, the return was -3.65%, indicating that the company was not generating optimal returns relative to its total capital employed. The following year, on December 31, 2021, the return worsened significantly to -13.82%, suggesting a deteriorating financial performance. This negative trend continued into December 31, 2022, with a return of -37.15%, signaling a substantial decline in the efficiency of capital utilization.
However, there was a notable turnaround in December 31, 2023, as the Return on Total Capital improved significantly to 25.45%. This sharp increase indicates a positive shift in the company's ability to generate returns on the capital invested. Furthermore, by December 31, 2024, the return further increased to 29.88%, showing sustained improvement in capital efficiency.
Overall, the Return on Total Capital for Blackline Inc has exhibited a mixed performance, with initial challenges followed by a commendable recovery in recent years. This upward trend demonstrates an enhanced ability to generate returns on the total capital deployed, reflecting positively on the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024