Digi International Inc (DGII)

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	40,559	50,124	53,703	51,090	46,571	38,318	24,645	18,674	14,419	10,384	11,887	10,790	11,205	11,083	8,794	7,636	4,959	11,233	10,378	11,782
Long-term debt	US$ in thousands	194,684	188,051	194,556	214,062	218,568	222,448	240,702	260,208	275,340	45,799	45,670	45,541	43,483	58,980	74,477	104,973	105,470	—	—	—
Total stockholders’ equity	US$ in thousands	542,075	540,488	531,583	520,179	509,928	501,513	486,922	480,504	474,032	472,517	465,471	459,152	377,642	371,500	363,305	358,363	356,315	348,978	345,076	340,838
Return on total capital		5.51%	6.88%	7.40%	6.96%	6.39%	5.29%	3.39%	2.52%	1.92%	2.00%	2.33%	2.14%	2.66%	2.57%	2.01%	1.65%	1.07%	3.22%	3.01%	3.46%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $40,559K ÷ ($194,684K + $542,075K)
= 5.51%

Digi International, Inc.'s return on total capital has shown a consistent improvement over the quarters presented in the data table. The return on total capital has increased gradually from 2.50% in Q2 2022 to 6.82% in Q1 2024. This indicates that the company has been able to generate a higher return relative to the total capital employed in its operations over time.

The upward trend in the return on total capital suggests that Digi International has been able to enhance its operational efficiency and make more effective use of its capital resources. This improvement is a positive indicator of the company's management effectiveness in generating returns for its investors and shareholders.

Overall, the increasing trend in the return on total capital reflects positively on Digi International's financial performance and may signal improved profitability and value creation for its stakeholders.