EPAM Systems Inc (EPAM)

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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	501,239	549,222	615,421	564,095	572,966	568,156	532,053	564,307	542,316	488,642	440,914	399,066	379,324	352,076	336,245	325,701	302,850	296,375	280,370	261,725
Long-term debt	US$ in thousands	26,126	27,500	25,854	28,253	27,693	28,198	30,221	30,550	30,234	25,024	29	25,032	25,038	25,039	25,044	—	25,074	—	—	—
Total stockholders’ equity	US$ in thousands	3,470,890	3,299,440	3,262,760	3,128,960	3,001,530	2,757,170	2,622,350	2,552,100	2,487,120	2,339,120	2,212,670	2,063,940	1,983,020	1,860,230	1,753,090	1,647,480	1,596,140	1,492,120	1,422,250	1,338,220
Return on total capital		14.33%	16.51%	18.71%	17.87%	18.91%	20.40%	20.06%	21.85%	21.54%	20.67%	19.93%	19.10%	18.89%	18.68%	18.91%	19.77%	18.68%	19.86%	19.71%	19.56%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $501,239K ÷ ($26,126K + $3,470,890K)
= 14.33%

EPAM Systems Inc's return on total capital has shown a downward trend in the most recent quarters, decreasing from 18.90% in Q4 2022 to 15.07% in Q4 2023. The company's return on total capital has fluctuated throughout the analyzed periods, with the highest being 21.77% in Q1 2022. Despite the volatility, EPAM Systems Inc consistently maintained a return on total capital above 15% in all quarters, indicating efficient utilization of both debt and equity to generate profits. The recent decline may warrant further investigation into the company's capital structure and operational efficiency to identify areas for improvement and sustainable growth.