Deluxe Corporation (DLX)
Return on total capital
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 210,096 | 215,971 | 228,933 | 226,278 | 207,702 | 210,923 | 211,391 | 201,561 | 213,903 | 200,449 | 194,133 | 198,948 | 205,615 | 198,710 | 215,492 | 210,507 | 102,627 | 133,801 | -272,009 | -250,962 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,831,000 | 612,559 | 619,889 | 607,843 | 604,600 | 599,400 | 613,600 | 595,206 | 604,200 | 601,686 | 596,800 | 578,699 | 574,600 | 557,626 | 552,300 | 558,645 | 540,800 | 511,400 | 485,269 | 474,000 |
| Return on total capital | 7.42% | 35.26% | 36.93% | 37.23% | 34.35% | 35.19% | 34.45% | 33.86% | 35.40% | 33.31% | 32.53% | 34.38% | 35.78% | 35.63% | 39.02% | 37.68% | 18.98% | 26.16% | -56.05% | -52.95% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $210,096K ÷ ($—K + $2,831,000K)
= 7.42%
Deluxe Corporation's return on total capital has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The return on total capital was negative in the initial quarters of 2020 before turning positive in the following quarters.
The return on total capital saw a significant improvement reaching its peak at 39.02% in June 30, 2021. However, it gradually decreased in the subsequent quarters but remained above 30%, indicating consistent profitability.
There was a noticeable decline in return on total capital in December 31, 2024, dropping to 7.42%. This decrease warrants further investigation to understand the factors affecting the company's profitability and capital efficiency during that period.
Overall, Deluxe Corporation's return on total capital has shown resilience and profitability, with fluctuations in performance that may require monitoring and analysis to optimize capital utilization and sustain profitability in the future.