Gen Digital Inc. (GEN)
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 | 1,196,000 | 1,567,000 | 1,565,000 | 1,190,000 | 1,131,000 | 1,092,000 | 1,106,000 | 1,297,000 | 1,183,000 | 978,000 | 919,000 | 1,156,000 | 1,180,000 | 1,377,000 | 1,363,000 | 1,172,000 | 1,033,000 | 1,016,000 | 1,186,000 | 1,019,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,269,000 | 2,151,000 | 2,098,000 | 1,970,000 | 2,197,000 | 2,418,000 | 2,414,000 | 2,337,000 | 2,200,000 | 1,310,000 | 1,698,000 | -299,000 | -93,000 | -98,000 | -232,000 | -497,000 | -500,000 | -492,000 | -476,000 | -503,000 |
| Return on total capital | 52.71% | 72.85% | 74.59% | 60.41% | 51.48% | 45.16% | 45.82% | 55.50% | 53.77% | 74.66% | 54.12% | — | — | — | — | — | — | — | — | — |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,196,000K ÷ ($—K + $2,269,000K)
= 52.71%
Gen Digital Inc.'s return on total capital has shown a fluctuating trend over the past few years. The ratio was not available from June 2020 to March 2022, indicating a lack of information during that period.
Starting from September 2022, the return on total capital was 54.12%, indicating a healthy return on invested capital. This ratio increased to 74.66% by December 2022, showing an improvement in the company's ability to generate profits from its total capital.
Subsequently, there was a slight decrease in the return on total capital to 53.77% by March 2023, followed by a further decrease to 45.82% by September 2023. This decline could be a sign of decreased profitability relative to the capital employed.
The ratio slightly recovered to 51.48% by March 2024 and improved significantly to 74.59% by September 2024, signaling a strong performance in generating returns on the total capital invested.
As of December 2024, the return on total capital was 72.85%, which remained high and indicated the company's ability to efficiently utilize its capital to generate profits.
By March 2025, the return on total capital decreased to 52.71%. Overall, although there were fluctuations, Gen Digital Inc. demonstrated strong performance in generating returns on its total capital, with some periods of decline and periods of significant improvement.
Peer comparison
Mar 31, 2025