Doximity Inc (DOCS)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	163,878	154,867	134,800	133,109	125,108	120,188	117,493	110,343	113,536
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	901,397	864,614	871,467	990,787	966,116	930,174	878,964	902,166	878,594	838,848	772,560	728,452
Return on total capital		18.18%	17.91%	15.47%	13.43%	12.95%	12.92%	13.37%	12.23%	12.92%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $163,878K ÷ ($—K + $901,397K)
= 18.18%

Doximity Inc's return on total capital has shown a positive trend over the past few quarters, indicating the company's efficiency in generating profits relative to its total capital employed. The return on total capital increased from 12.92% in Dec 2021 to 18.18% in Mar 2024, reflecting a strong performance in utilizing its capital effectively.

The consistent improvement in return on total capital suggests that Doximity is effectively managing its operations and investments to generate higher returns for its capital providers. Investors and stakeholders may view this trend positively as it indicates the company's ability to generate earnings from the capital invested in its business activities.

Overall, the increasing trend in return on total capital for Doximity Inc demonstrates the company's ability to enhance profitability and efficiency in utilizing its total capital, which can contribute to sustainable long-term growth and value creation for its shareholders.