Dril-Quip Inc (DRQ)

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	10,105	8,408	27,289	18,389	6,986	-67,255	-86,813	-98,118	-124,263	-64,426	-59,594	-51,845	-61,428	-42,473	-38,429	-26,777	10,742	-93,420	-107,739	-114,012
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	881,260	870,462	879,409	877,814	872,352	862,916	868,689	887,278	897,108	979,777	995,324	1,008,270	1,041,530	1,037,560	1,015,390	1,024,200	1,090,700	1,092,670	1,097,130	1,095,400
Return on total capital		1.15%	0.97%	3.10%	2.09%	0.80%	-7.79%	-9.99%	-11.06%	-13.85%	-6.58%	-5.99%	-5.14%	-5.90%	-4.09%	-3.78%	-2.61%	0.98%	-8.55%	-9.82%	-10.41%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $10,105K ÷ ($—K + $881,260K)
= 1.15%

Dril-Quip, Inc.'s return on total capital has shown variability in recent quarters. In Q4 2023, the return on total capital was 0.16%, marking a positive performance compared to the negative returns in the previous quarters, which ranged from -0.11% to -1.12%. This improvement suggests that the company's capital utilization and profitability may have strengthened in the most recent quarter.

It is worth noting that the return on total capital has been negative for the past eight quarters, indicating a consistent challenge in generating returns on the invested capital. The company may need to focus on enhancing its operational efficiency, managing costs, and optimizing its capital structure to improve its return on total capital in the future. Further analysis of the company's financial performance and strategic initiatives will be crucial in understanding the underlying factors influencing these fluctuations in return on total capital.