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.