Godaddy Inc (GDDY)
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 | 932,900 | 650,300 | 549,600 | 460,000 | -400,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 692,100 | 62,200 | -331,800 | 81,700 | -12,900 |
| Return on total capital | 134.79% | 1,045.50% | — | 563.04% | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $932,900K ÷ ($—K + $692,100K)
= 134.79%
Based on the provided data, Godaddy Inc's return on total capital has shown significant fluctuations over the years. In December 31, 2021, the return on total capital was notably high at 563.04%, indicating efficient utilization of the company's capital to generate profits. This was followed by a substantial increase in December 31, 2023, where the return on total capital surged to 1,045.50%, reflecting a further improvement in the company's capital efficiency.
However, in December 31, 2024, the return on total capital dropped to 134.79%, suggesting a decline in the company's ability to generate returns on the total capital employed. It is important for investors and stakeholders to monitor such fluctuations in return on total capital as it provides insights into the company's profitability and efficiency in capital allocation.
Peer comparison
Dec 31, 2024