Digi International Inc (DGII)

Return on total capital

		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	Mar 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	38,273	36,859	36,456	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
Long-term debt	US$ in thousands	123,185	151,618	171,751	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	581,035	563,054	549,627	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
Return on total capital		5.43%	5.16%	5.05%	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%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $38,273K ÷ ($123,185K + $581,035K)
= 5.43%

Digi International Inc's return on total capital has shown some variability over the past few quarters. The company's return on total capital ranged from a low of 1.07% in the fourth quarter of 2019 to a high of 7.40% in the second quarter of 2023.

In recent quarters, the return on total capital has been relatively stable, with values ranging between 5.05% and 5.51% in the last four quarters. This suggests that the company has been effectively utilizing its total capital to generate returns for its stakeholders.

It is also important to note that the return on total capital has generally been on an upward trend since the fourth quarter of 2021, indicating improvements in the company's capital efficiency and profitability. However, the return on total capital was lower in the most recent quarter compared to the previous quarter, which is something that investors and analysts may want to monitor closely in future periods.