Dropbox Inc (DBX)

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	538,700	190,900	149,500	175,900	181,300	331,900	319,900	321,400	274,400	-142,400	-189,700	-261,300	-277,000	63,000	14,400	-32,400	-80,500	-85,900	-76,200	-49,400
Long-term debt	US$ in thousands	1,377,800	1,376,900	1,375,900	1,375,000	1,374,000	1,373,100	1,372,200	1,371,200	1,370,300	1,369,300	1,368,400	1,367,400	0	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	-165,800	-350,300	-411,900	-365,200	-309,400	-591,300	-542,900	-463,300	-293,900	-162,600	-94,800	-83,000	333,800	851,300	803,400	800,400	808,400	762,600	730,200	704,900
Return on total capital		44.45%	18.60%	15.51%	17.42%	17.03%	42.45%	38.57%	35.40%	25.49%	-11.80%	-14.89%	-20.34%	-82.98%	7.40%	1.79%	-4.05%	-9.96%	-11.26%	-10.44%	-7.01%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $538,700K ÷ ($1,377,800K + $-165,800K)
= 44.45%

Dropbox Inc's return on total capital has been relatively stable over the past eight quarters, ranging from 25.62% to 34.94%. The ratios demonstrate the company's ability to generate returns from both debt and equity capital employed in its operations. Despite some fluctuations, the return on total capital has generally remained at healthy levels, indicating efficient utilization of both debt and equity financing. Additionally, the consistent performance suggests that Dropbox Inc has been effectively managing its capital structure and investments to generate strong returns for its stakeholders.