Dynatrace Holdings LLC (DT)

Return on total capital

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	156,315	92,811	81,307	91,896	-171,939
Long-term debt	US$ in thousands	—	0	273,918	391,913	509,985
Total stockholders’ equity	US$ in thousands	2,015,490	1,604,870	1,304,450	1,113,600	965,704
Return on total capital		7.76%	5.78%	5.15%	6.10%	-11.65%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $156,315K ÷ ($—K + $2,015,490K)
= 7.76%

Analyzing the return on total capital for Dynatrace Holdings LLC over the past five years, we observe fluctuations in the company's efficiency in generating returns from its total invested capital.

In the latest period ending March 31, 2024, the return on total capital stood at 7.76%, reflecting an improvement compared to the previous year's 5.78%. This uptick suggests that the company has become more effective in utilizing its overall capital resources to generate profits.

Looking back further, we see a gradual increase in the return on total capital from 5.15% in 2022 to 6.10% in 2021. This indicates a positive trend in the company's ability to deliver returns relative to its total capital base, showcasing improved operational efficiency during these years.

However, in 2020, the company experienced a notable downturn with a negative return on total capital of -11.65%. This negative figure suggests that the company faced challenges in deploying its total capital effectively to generate returns during that period.

Overall, the positive trajectory in the return on total capital from 2020 to 2024 indicates that Dynatrace Holdings LLC has made strides in enhancing its capital efficiency and profitability, albeit with fluctuations in certain years. Continued monitoring and improvement in this metric will be essential for sustaining and enhancing the company's financial performance in the future.