DocuSign Inc (DOCU)
Return on total capital
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 199,928 | 100,523 | -83,492 | -60,471 | -198,693 |
| Long-term debt | US$ in thousands | — | — | 0 | 718,487 | 693,219 |
| Total stockholders’ equity | US$ in thousands | 2,002,690 | 1,129,740 | 617,287 | 275,503 | 325,737 |
| Return on total capital | 9.98% | 8.90% | -13.53% | -6.08% | -19.50% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $199,928K ÷ ($—K + $2,002,690K)
= 9.98%
DocuSign Inc's return on total capital has shown a fluctuating trend over the past five years. Starting from negative returns in January 2021 and January 2023 at -19.50% and -13.53%, respectively, the company improved its performance to -6.08% in January 2022. Subsequently, there was a significant positive turnaround in the company's performance, with returns of 8.90% and 9.98% in January 2024 and January 2025, respectively.
This positive trend indicates that DocuSign Inc has been increasingly efficient in generating returns relative to the total capital employed in its operations. The increasing returns suggest improved profitability and effective utilization of capital resources, potentially leading to enhanced shareholder value and financial stability. It is essential for investors and stakeholders to monitor this metric consistently to evaluate the company's overall financial health and performance over time.
Peer comparison
Jan 31, 2025