Blackline Inc (BL)

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	60,153	46,799	17,329	-25,588	-37,099	-69,633	-49,411	-49,194	-52,090	-42,839	-47,280	-40,457	-22,898	-14,388	-18,136	-21,482	-24,004	-28,532	-27,251	-29,726
Long-term debt	US$ in thousands	1,140,610	1,139,540	1,387,050	1,385,670	1,384,310	1,382,910	1,381,520	1,380,150	1,114,240	1,097,970	1,081,940	1,066,350	407,032	401,217	395,459	389,875	384,343	378,856	—	—
Total stockholders’ equity	US$ in thousands	260,881	215,731	176,362	116,992	111,868	77,931	79,183	66,128	325,036	340,740	337,041	339,628	422,070	416,934	409,778	396,189	398,613	393,820	324,548	318,036
Return on total capital		4.29%	3.45%	1.11%	-1.70%	-2.48%	-4.77%	-3.38%	-3.40%	-3.62%	-2.98%	-3.33%	-2.88%	-2.76%	-1.76%	-2.25%	-2.73%	-3.07%	-3.69%	-8.40%	-9.35%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $60,153K ÷ ($1,140,610K + $260,881K)
= 4.29%

Blackline Inc's return on total capital has been fluctuating over the past several quarters. The return on total capital was positive in most recent quarters, with the highest return of 4.29% at the end of December 2023 and the lowest return of -1.70% at the end of March 2023.

The return on total capital indicates the company's ability to generate profit from its total capital employed, including both equity and debt. The positive returns suggest that the company is effectively utilizing its capital to generate profits, albeit with fluctuations in performance.

It is important for Blackline Inc to monitor and improve its return on total capital consistently to ensure efficient and profitable use of its resources. The company should analyze the factors contributing to the fluctuations in returns and take strategic actions to enhance capital utilization efficiency in the future.