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.