DoubleVerify Holdings Inc (DV)

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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	96,909	85,164	79,495	75,388	60,263	46,688	43,995	21,011	27,032
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	22,000
Total stockholders’ equity	US$ in thousands	1,073,940	1,011,280	934,222	903,198	876,859	840,015	821,335	813,689	799,066	732,756	719,416	424,616
Return on total capital		9.02%	8.42%	8.51%	8.35%	6.87%	5.56%	5.36%	2.58%	3.38%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $96,909K ÷ ($—K + $1,073,940K)
= 9.02%

DoubleVerify Holdings Inc's return on total capital has shown a mostly consistent upward trend over the past two years, increasing from 2.54% in Q1 2022 to 7.94% in Q4 2023. This indicates that the company has been more efficient in generating returns from its overall capital base. The gradual improvement in this ratio reflects positively on the company's ability to utilize its capital effectively and generate profits. The steady increase in return on total capital demonstrates management's focus on maximizing shareholder wealth and improving operational efficiency. Overall, DoubleVerify Holdings Inc's performance in terms of return on total capital has been positive and indicates a trend of improving financial health.