Godaddy Inc (GDDY)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 582,000 | 502,100 | 379,100 | -405,100 | 217,100 |
| Long-term debt | US$ in thousands | 3,798,500 | 3,812,900 | 3,858,200 | 3,090,100 | 2,376,800 |
| Total stockholders’ equity | US$ in thousands | 62,200 | -331,800 | 81,700 | -12,900 | 772,000 |
| Return on total capital | 15.07% | 14.42% | 9.62% | -13.16% | 6.89% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $582,000K ÷ ($3,798,500K + $62,200K)
= 15.07%
Godaddy Inc's return on total capital has shown a positive trend over the past five years, indicating improving efficiency in generating profits from the total capital employed. The return on total capital has increased from 6.40% in 2019 to 16.45% in 2023. This demonstrates the company's ability to effectively utilize its total capital to generate earnings for its investors. The rising trend suggests that Godaddy Inc has been making more efficient investments and operational decisions in recent years, leading to higher returns for its investors. Overall, the improving return on total capital reflects positively on the company's financial performance and management effectiveness.
Peer comparison
Dec 31, 2023