DocuSign Inc (DOCU)
Return on total capital
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 214,037 | 185,017 | 163,398 | 129,664 | 100,521 | 76,160 | 12,138 | -52,016 | -83,486 | -118,373 | -96,053 | -79,640 | -60,464 | -88,432 | -132,922 | -165,324 | -198,735 | -181,711 | -171,164 | -175,247 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | 0 | 684,861 | 720,677 | 719,616 | 718,487 | 718,821 | 730,272 | 742,577 | 693,219 | 486,149 | 479,105 | 472,162 |
| Total stockholders’ equity | US$ in thousands | 2,002,690 | 1,989,380 | 1,961,410 | 1,137,000 | 1,129,740 | 965,033 | 847,759 | 749,492 | 617,287 | 468,506 | 407,131 | 348,949 | 275,503 | 239,569 | 211,876 | 243,237 | 325,737 | 426,032 | 501,891 | 522,788 |
| Return on total capital | 10.69% | 9.30% | 8.33% | 11.40% | 8.90% | 7.89% | 1.43% | -6.94% | -13.52% | -10.26% | -8.52% | -7.45% | -6.08% | -9.23% | -14.11% | -16.77% | -19.50% | -19.92% | -17.45% | -17.61% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $214,037K ÷ ($—K + $2,002,690K)
= 10.69%
DocuSign Inc's return on total capital has shown a fluctuating trend over the period from April 2020 to January 2025. Starting with negative returns in the range of -17% to -19% in 2020 and 2021, the company saw a gradual improvement in its performance. By January 2025, the return on total capital had increased to 10.69%, indicating a positive turn in the company's capital efficiency.
The negative returns in the initial period suggest that the company may have faced challenges in generating profit relative to the total capital employed. However, the subsequent trend of improving returns signifies that DocuSign Inc has been able to enhance its capital utilization and possibly optimize its operations more effectively.
Overall, the increasing trend in return on total capital reflects positively on DocuSign Inc's ability to generate profits in relation to the capital invested, showcasing potential improvements in operational efficiency and financial performance.
Peer comparison
Jan 31, 2025