Deluxe Corporation (DLX)
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 | 165,336 | 161,573 | 183,369 | 182,379 | 178,698 | 175,532 | 169,528 | 144,058 | 149,218 | 142,395 | 150,340 | 147,975 | 50,063 | 74,584 | -310,510 | -282,622 | -157,177 | -138,555 | 185,019 | 216,286 |
| Long-term debt | US$ in thousands | 1,506,700 | 1,546,330 | 1,581,150 | 1,607,860 | 1,572,530 | 1,606,460 | 1,618,360 | 1,635,190 | 1,625,750 | 1,719,000 | 1,776,280 | 840,000 | 840,000 | 1,040,000 | 1,140,000 | 1,140,000 | 883,500 | 924,000 | 951,000 | 946,000 |
| Total stockholders’ equity | US$ in thousands | 604,094 | 598,891 | 613,160 | 595,206 | 603,809 | 601,686 | 596,440 | 578,699 | 574,318 | 557,626 | 552,068 | 558,645 | 540,697 | 511,348 | 485,269 | 473,967 | 570,861 | 525,527 | 894,149 | 897,563 |
| Return on total capital | 7.83% | 7.53% | 8.36% | 8.28% | 8.21% | 7.95% | 7.65% | 6.51% | 6.78% | 6.25% | 6.46% | 10.58% | 3.63% | 4.81% | -19.11% | -17.51% | -10.81% | -9.56% | 10.03% | 11.73% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $165,336K ÷ ($1,506,700K + $604,094K)
= 7.83%
Deluxe Corp.'s return on total capital has been relatively stable over the past eight quarters, ranging from 8.53% in Q1 2022 to 9.64% in Q2 2023. The company's return on total capital peaked in Q2 2023 before experiencing a slight decline in Q4 2023 to 9.40%. Overall, Deluxe Corp. has consistently maintained a return on total capital above 9% in recent quarters, indicating efficient utilization of both equity and debt capital to generate profits for its shareholders. This performance suggests that the company has been effectively managing its capital structure and using its resources to generate satisfactory returns.