CommVault Systems Inc (CVLT)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	84,028	23,395	6,481	-2,610	-14,890	34,879	42,419	35,216	43,523	41,835	31,625	-12,882	-21,827	-34,620	-37,934	-4,151	-17,508	-15,055	-4,132	5,043
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	278,085	174,603	181,523	172,016	186,098	260,016	265,263	270,484	255,829	253,460	299,778	354,538	394,034	414,071	419,476	434,235	411,904	417,633	372,114	359,817
Return on total capital		30.22%	13.40%	3.57%	-1.52%	-8.00%	13.41%	15.99%	13.02%	17.01%	16.51%	10.55%	-3.63%	-5.54%	-8.36%	-9.04%	-0.96%	-4.25%	-3.60%	-1.11%	1.40%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $84,028K ÷ ($—K + $278,085K)
= 30.22%

CommVault Systems Inc's return on total capital has exhibited fluctuating trends over the past several quarters. The company achieved a notable return on total capital of 30.22% as of March 31, 2024, indicating efficient utilization of both debt and equity to generate profits. Prior to that, the return on total capital had shown a positive trend, with levels ranging from 13.40% to 17.01% in the preceding quarters.

However, there were instances of negative returns on total capital, notably in the second and third quarters of 2021 and the second and third quarters of 2020. These negative figures could indicate challenges in effectively deploying capital or generating satisfactory returns during those periods.

Overall, despite some fluctuations, CommVault Systems Inc has managed to deliver healthy returns on total capital in recent quarters, suggesting an ability to efficiently use capital resources to generate profits. Monitoring this ratio over time will be important to assess the company's ongoing financial performance and capital allocation strategies.