Doximity Inc (DOCS)

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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	181,626	223,478	202,104	188,386	168,673	163,537	140,316	127,549	119,918	111,107	109,917	104,463	108,991	103,971	87,267	74,197	52,841	41,018	31,000
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,082,620	1,031,120	961,196	913,580	901,397	864,614	871,467	990,787	966,116	930,174	878,964	902,166	878,594	838,848	772,560	728,452	66,743	121,196	—
Return on total capital		16.78%	21.67%	21.03%	20.62%	18.71%	18.91%	16.10%	12.87%	12.41%	11.94%	12.51%	11.58%	12.41%	12.39%	11.30%	10.19%	79.17%	33.84%	—

March 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $181,626K ÷ ($—K + $1,082,620K)
= 16.78%

The Return on Total Capital for Doximity Inc has shown fluctuations over the period in question. Starting from December 31, 2020, at 33.84%, it peaked at 79.17% by March 31, 2021, indicating a significant increase in the company's efficiency in generating returns from its total capital. However, the ratio decreased to 10.19% by June 30, 2021, before gradually climbing back up, reaching 21.67% as of December 31, 2024.

The consistent improvements in the Return on Total Capital suggest that Doximity Inc has been effectively utilizing its capital to generate profits. Despite a slight dip in the ratio in some periods, the overall trend indicates a positive performance in terms of capital efficiency. It is essential for investors to monitor this ratio to assess the company's ability to create value from its invested capital and to track the company's operational efficiency and profitability over time.