3D Systems Corporation (DDD)

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	-412,470	-406,004	-106,753	-126,874	-127,183	-117,019	-92,817	-76,320	-54,342	-33,069	-28,496	-78,892	-102,704	-118,963	-124,393	-68,723	-54,017	-57,104	-59,424	-58,474
Long-term debt	US$ in thousands	211,054	319,356	451,520	450,848	450,179	449,510	448,852	448,081	447,534	446,859	0	0	0	19,218	19,804	20,063	44,619	45,215	55,421	75,378
Total stockholders’ equity	US$ in thousands	410,331	428,759	701,466	712,955	731,448	751,704	735,910	785,807	826,876	842,381	749,150	466,539	462,133	430,723	428,518	463,428	488,669	522,159	514,749	536,832
Return on total capital		-66.38%	-54.27%	-9.26%	-10.90%	-10.76%	-9.74%	-7.83%	-6.19%	-4.26%	-2.56%	-3.80%	-16.91%	-22.22%	-26.44%	-27.75%	-14.21%	-10.13%	-10.06%	-10.42%	-9.55%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-412,470K ÷ ($211,054K + $410,331K)
= -66.38%

3D Systems Corporation's return on total capital has been fluctuating over the past several quarters. The return on total capital ratio measures how efficiently a company generates profits from its total capital, including both debt and equity.

The ratio has shown a downward trend overall, with the most recent figure as of March 31, 2024, standing at -66.38%, indicating that the company is not effectively utilizing its total capital to generate returns for shareholders.

The sharp decline in the return on total capital from the previous quarter suggests that the company may be facing challenges in effectively deploying its capital to generate profits. It is essential for 3D Systems Corporation to focus on improving its operational efficiency and strategic capital allocation to enhance its return on total capital in the future.