DXC Technology Co (DXC)

Return on total capital

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	896,000	266,000	359,000	-1,862,000	-1,858,000	-2,725,000	-2,857,000	-700,000	-685,000	1,257,000	1,303,000	1,018,000	1,345,000	-213,000	1,643,000	1,624,000	1,019,000	-1,732,000	-3,568,000	-5,257,000
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	3,490,000	2,990,000	2,981,000	2,850,000	2,811,000	3,107,000	3,467,000	3,603,000	3,820,000	4,952,000	4,936,000	5,049,000	5,375,000	5,087,000	5,083,000	5,386,000	5,308,000	5,995,000	4,751,000	4,593,000
Return on total capital		25.67%	8.90%	12.04%	-65.33%	-66.10%	-87.71%	-82.41%	-19.43%	-17.93%	25.38%	26.40%	20.16%	25.02%	-4.19%	32.32%	30.15%	19.20%	-28.89%	-75.10%	-114.46%

March 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $896,000K ÷ ($—K + $3,490,000K)
= 25.67%

DXC Technology Co's return on total capital has exhibited significant fluctuations over the period under review. Starting strongly negative at -114.46% in June 2020, the ratio improved gradually, turning positive by March 2021 at 19.20%. Subsequently, the return on total capital continued to increase, reaching its peak at 32.32% in September 2021. However, the ratio dropped to -4.19% by December 2021 before rebounding again. Throughout the following quarters, the ratio showed mixed performance, fluctuating between negative and positive values. As of March 31, 2025, the return on total capital stood at 25.67%. These fluctuations in the return on total capital reflect the company's changing performance in generating profits relative to the total capital employed in the business.