Grid Dynamics Holdings Inc (GDYN)
Return on total capital
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,801 | 4,423 | 2,430 | 3,420 | 2,970 | -10,127 | -13,570 | -26,379 | -20,184 | -17,627 | -12,357 | 502 | -1,479 | -2,756 | -6,341 | -10,704 | -16,204 | -7,727 | -527 | 7,288 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 517,829 | 400,247 | 388,449 | 382,811 | 382,907 | 372,924 | 366,562 | 359,885 | 363,044 | 350,838 | 232,925 | 231,252 | 227,051 | 275,566 | 143,012 | 140,247 | 151,728 | 150,005 | 145,977 | 144,430 |
| Return on total capital | -0.35% | 1.11% | 0.63% | 0.89% | 0.78% | -2.72% | -3.70% | -7.33% | -5.56% | -5.02% | -5.31% | 0.22% | -0.65% | -1.00% | -4.43% | -7.63% | -10.68% | -5.15% | -0.36% | 5.05% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-1,801K ÷ ($—K + $517,829K)
= -0.35%
Grid Dynamics Holdings Inc's return on total capital has shown fluctuating performance over the past few years. The ratio started at a modest level of 5.05% as of March 31, 2020, before turning negative in the subsequent quarters. From June 30, 2020, to December 31, 2023, the return on total capital remained negative, indicating that the company's capital investment was not generating sufficient returns during this period.
However, there was a slight improvement in performance starting from March 31, 2024, with the return on total capital turning positive and reaching a peak of 1.11% as of September 30, 2024. This suggests that the company may have implemented strategic changes or optimizations to enhance the efficiency of its capital utilization.
Overall, Grid Dynamics Holdings Inc's return on total capital has been inconsistent, reflecting varying levels of profitability relative to the total capital employed by the company. Further analysis of the factors influencing these fluctuations would be necessary to assess the long-term sustainability of the company's capital allocation strategies.
Peer comparison
Dec 31, 2024