Blackbaud Inc (BLKB)

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	57,566	7,295	-22,969	-22,854	-19,772	-11,015	4,251	14,594	25,086	30,438	28,359	35,041	38,901	43,458	42,870	38,330	31,203	43,503	49,098	45,146
Long-term debt	US$ in thousands	760,405	723,376	827,403	858,912	840,241	835,881	921,619	963,109	937,483	514,418	531,973	537,924	518,193	497,953	478,919	520,576	459,600	495,556	553,812	576,068
Total stockholders’ equity	US$ in thousands	808,705	800,171	761,370	719,733	744,032	732,812	720,474	705,050	717,060	396,837	405,274	416,160	426,150	441,835	410,802	380,393	396,764	381,457	372,702	365,748
Return on total capital		3.67%	0.48%	-1.45%	-1.45%	-1.25%	-0.70%	0.26%	0.87%	1.52%	3.34%	3.03%	3.67%	4.12%	4.62%	4.82%	4.25%	3.64%	4.96%	5.30%	4.79%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $57,566K ÷ ($760,405K + $808,705K)
= 3.67%

Return on total capital for Blackbaud Inc has fluctuated over the past eight quarters. In Q4 2023, it stood at 2.81%, marking a significant improvement from the negative returns seen in the prior three quarters. However, this positive trend followed consecutive negative returns in the previous quarters, with Q3 2023 recording -0.20%, Q2 2023 at -2.00%, and Q1 2023 at -2.03%. The company's return on total capital had been on a declining trend since Q1 2022, where it stood at 0.74%. Overall, the recent improvement in Q4 2023 suggests a potential turnaround in the company's capital efficiency, but further monitoring is necessary to assess the sustainability of this positive performance.