3D Systems Corporation (DDD)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	-406,004	-117,019	321,880	-139,019	-60,906
Long-term debt	US$ in thousands	319,356	449,510	446,859	19,218	45,215
Total stockholders’ equity	US$ in thousands	428,759	751,704	842,381	430,723	522,159
Return on total capital		-54.27%	-9.74%	24.97%	-30.90%	-10.73%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-406,004K ÷ ($319,356K + $428,759K)
= -54.27%

The return on total capital for 3D Systems Corporation has exhibited significant fluctuations over the past five years. In 2023, the return on total capital was -54.27%, indicating that the company's capital utilization and profitability were negatively impacted during that period. This marked a substantial decrease from the previous year, 2022, when the return on total capital was -9.74%.

The most favorable performance in terms of return on total capital was observed in 2021, at 24.97%, signifying a strong ability to generate profits relative to the total invested capital. However, this positive trend was reversed in 2020, with a return on total capital of -30.90%, suggesting a decline in efficiency and profitability.

Looking back to 2019, the return on total capital was -10.73%, indicating a suboptimal performance in capital utilization compared to the revenue generated. Overall, the varying trends in return on total capital highlight the importance of closely monitoring capital efficiency and profitability to ensure sustainable financial performance.