Datadog Inc (DDOG)
Return on total capital
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 90,658 | 101,535 | 65,390 | 4,362 | -30,262 | -35,762 | -67,314 | -82,415 | -55,879 | -21,535 | 15,436 | 34,912 | 25,788 | 2,630 | -10,564 | -20,282 | -10,568 | 267 | -2,941 | 2,504 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,916,670 | 2,714,360 | 2,629,140 | 2,407,310 | 2,202,360 | 2,025,350 | 1,806,480 | 1,649,360 | 1,512,100 | 1,410,500 | 1,289,440 | 1,215,120 | 1,116,860 | 1,041,200 | 957,412 | 912,879 | 841,330 | 957,432 | 936,188 | 912,871 |
| Return on total capital | 3.11% | 3.74% | 2.49% | 0.18% | -1.37% | -1.77% | -3.73% | -5.00% | -3.70% | -1.53% | 1.20% | 2.87% | 2.31% | 0.25% | -1.10% | -2.22% | -1.26% | 0.03% | -0.31% | 0.27% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $90,658K ÷ ($—K + $2,916,670K)
= 3.11%
The analysis of Datadog Inc's return on total capital (ROTC) over the specified period reveals significant fluctuations indicative of underlying operational and financial dynamics. Initially, the company exhibited marginal positive returns, with a 0.27% ROTC as of June 30, 2020. Subsequently, the figure declined into negative territory by September 30, 2020, at -0.31%, and hovered near zero by the end of that year, with a minimal 0.03% at December 31, 2020, suggesting limited profitability relative to the total invested capital.
Throughout 2021, the company experienced volatility, with negative ROTC figures recorded in March and June at -1.26% and -2.22%, respectively. Despite this, there was a brief reversal to a modest positive of 0.25% at December 31, 2021. The pattern of oscillating performance persisted into 2022, with ROTC reaching a high of 2.87% as of June 30, 2022, indicating an improving utilization of total capital during that period. Nevertheless, the return declined again later in the year, turning negative at -1.53% by December 31, 2022.
The downward trend intensified into 2023, with the ROTC decreasing to -3.70% at March 31 and further to -5.00% at June 30, reflecting a period of diminished efficiency in generating returns from total capital. The negative momentum persisted throughout the remainder of 2023, with the ROTC remaining below zero, reaching -3.73% at September 30 and -1.77% at December 31. Early 2024 saw slight improvement, with the return improving to -1.37% at March 31 and turning positive at 0.18% by June 30.
In subsequent quarters, the ROTC displayed a sustained upward trend, with the figure reaching 2.49% at September 30, 2024, and climbing further to 3.74% at December 31, 2024. This indicates a period of renewed efficiency in capital utilization, which continued into the first quarter of 2025 with an estimated return of approximately 3.11%.
Overall, the historical pattern demonstrates a pattern of volatility with periods of negative returns interspersed with positive recoveries, culminating in a shift towards more consistent positive returns in late 2024 and early 2025. This suggests that Datadog Inc has experienced periods of operational challenges and strategic adjustments, with recent data indicating a potential stabilizing trend and improving profitability relative to total capital employed.
Peer comparison
Mar 31, 2025