DoubleVerify Holdings Inc (DV)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 89,908 | 96,943 | 52,934 | 26,993 | 21,890 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,083,460 | 1,073,940 | 876,859 | 799,066 | 416,695 |
| Return on total capital | 8.30% | 9.03% | 6.04% | 3.38% | 5.25% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $89,908K ÷ ($—K + $1,083,460K)
= 8.30%
DoubleVerify Holdings Inc's return on total capital has fluctuated over the past five years. In 2020, the company's return on total capital stood at 5.25%, indicating that for every dollar of total capital invested, the company generated a return of 5.25 cents. This ratio decreased to 3.38% in 2021, suggesting a decline in the company's efficiency in generating profits from its total capital.
However, in 2022, DoubleVerify saw an improvement in its return on total capital, reaching 6.04%, indicating a better utilization of capital to generate returns. This positive trend continued into 2023, with the return on total capital increasing to 9.03%, indicating significant improvement in the company's profitability and capital efficiency.
In 2024, DoubleVerify's return on total capital remained relatively strong at 8.30%, indicating that the company continued to effectively generate returns from its total capital investment. Overall, the trend in the return on total capital suggests that DoubleVerify has made improvements in its capital utilization and profitability over the past few years.
Peer comparison
Dec 31, 2024