Blackbaud Inc (BLKB)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-278,684	179,688	168,106	125,403	103,397	21,372	-12,331	-16,976	-14,252	-9,540	3,286	11,898	22,748	27,197	24,347	31,419	35,074	40,863	41,747	38,469
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	141,993	544,327	577,337	534,054	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
Return on total capital		-196.27%	33.01%	29.12%	23.48%	12.79%	2.67%	-1.62%	-2.36%	-1.92%	-1.30%	0.46%	1.69%	3.17%	6.85%	6.01%	7.55%	8.23%	9.25%	10.16%	10.11%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-278,684K ÷ ($—K + $141,993K)
= -196.27%

Blackbaud Inc's return on total capital has shown fluctuations over the years based on the provided data. The return on total capital stood at 10.11% in March 2020 and gradually declined to 1.69% in March 2022. From March 2022 onwards, there was a sharp downturn with negative returns recorded consistently until December 2023.

However, there was a significant improvement in the return on total capital in the subsequent periods, with a notable turnaround in March 2024 when it reached 23.48%. This positive trend continued with further increases in June and September 2024, reaching 29.12% and 33.01% respectively.

It is important to note that there was a substantial decrease in the return on total capital in December 2024, falling to -196.27%. This sharp decline could indicate potential challenges in capital management during that period.

Overall, the return on total capital for Blackbaud Inc has been volatile, with periods of both positive and negative returns. The company should continue to closely monitor and manage its capital allocation strategies to sustain positive returns and drive long-term value for its shareholders.