Blackbaud Inc (BLKB)

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	-255,957	57,566	-14,252	21,372	35,074
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	141,993	808,705	744,032	717,060	426,150
Return on total capital		-180.26%	7.12%	-1.92%	2.98%	8.23%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-255,957K ÷ ($—K + $141,993K)
= -180.26%

Based on the provided data, Blackbaud Inc's return on total capital has shown significant fluctuations over the past five years. In December 31, 2020, the return stood at 8.23%, indicating a reasonable level of profitability relative to the total capital employed. However, there was a notable decline in performance by December 31, 2021, with the return dropping to 2.98%.

The trend worsened in December 31, 2022, where the return on total capital turned negative at -1.92%, suggesting that the company was not efficiently utilizing its total capital to generate profits during that period.

By December 31, 2023, Blackbaud Inc managed to improve its return on total capital to 7.12%, signifying a recovery in profitability and potentially more effective capital management strategies.

Unexpectedly, by December 31, 2024, the return on total capital plummeted to an alarming -180.26%, which could indicate significant financial difficulties or unusual events impacting the company's financial performance.

Overall, the erratic performance of Blackbaud Inc's return on total capital over the years suggests that the company may be facing challenges in efficiently deploying its capital or managing its profitability effectively. Further analysis would be required to understand the underlying reasons for these fluctuations and to assess the company's financial health and sustainability.