Blackbaud Inc (BLKB)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 57,566 | -19,772 | 25,086 | 38,901 | 31,203 |
| Long-term debt | US$ in thousands | 760,405 | 840,241 | 937,483 | 518,193 | 459,600 |
| Total stockholders’ equity | US$ in thousands | 808,705 | 744,032 | 717,060 | 426,150 | 396,764 |
| Return on total capital | 3.67% | -1.25% | 1.52% | 4.12% | 3.64% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $57,566K ÷ ($760,405K + $808,705K)
= 3.67%
Blackbaud Inc's return on total capital has shown some variability over the past five years. In 2023, the return on total capital was 2.81%, marking an improvement compared to the previous year, where it was negative at -1.78%. However, the return in 2023 was still lower compared to 2020 and 2019, where the returns were 3.92% and 3.81% respectively.
The return on total capital measures the efficiency of the company in generating profits from its capital employed. A higher return on total capital indicates better utilization and productivity of capital investments. The decrease from 2020 to 2022 and the subsequent improvement in 2023 suggest that Blackbaud Inc may have experienced challenges in generating returns from its total capital in the past, but has made some progress in the most recent year.
It is important for Blackbaud Inc to continue monitoring and improving its return on total capital to ensure efficient use of capital resources and maximize shareholder value in the long term.
Peer comparison
Dec 31, 2023