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.
Peer comparison
Dec 31, 2023