Dynatrace Holdings LLC (DT)

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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	128,400	124,708	122,875	108,005	92,811	91,009	78,337	79,189	81,307	84,530	87,422	89,002	91,896	79,079	62,527	-114,827	-171,939
Long-term debt	US$ in thousands	—	—	—	—	0	0	214,947	244,427	273,918	303,415	332,907	362,404	391,913	451,427	480,941	510,452	509,985	540,236	569,789	1,002,790
Total stockholders’ equity	US$ in thousands	2,015,490	1,913,880	1,801,650	1,704,930	1,604,870	1,467,020	1,401,680	1,345,630	1,304,450	1,276,020	1,221,000	1,158,950	1,113,600	1,063,950	1,027,120	992,784	965,704	899,190	886,282	-437,629
Return on total capital		6.37%	6.52%	6.82%	6.33%	5.78%	6.20%	4.85%	4.98%	5.15%	5.35%	5.63%	5.85%	6.10%	5.22%	4.15%	-7.64%	-11.65%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $128,400K ÷ ($—K + $2,015,490K)
= 6.37%

The return on total capital for Dynatrace Holdings LLC has shown fluctuating performance over the past several quarters. The ratio ranged from -11.65% in June 2020 to a positive 6.82% in September 2023. It is important to note that negative values, such as the -7.64% in March 2020 and the -11.65% in June 2020, indicate that the company's capital was not generating sufficient returns during those periods.

Overall, the company's return on total capital has generally been positive, with the highest point at 6.82% in September 2023. This indicates that Dynatrace Holdings LLC has been able to generate a positive return on the capital invested in the business, albeit with some fluctuations. It would be beneficial for the company to analyze the factors contributing to the variations in the return on total capital and work towards maintaining or improving this metric in the future.