Gen Digital Inc. (GEN)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jul 5, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,122,000	1,079,000	1,112,000	1,328,000	1,227,000	999,000	933,000	979,000	1,005,000	1,142,000	1,120,000	1,063,000	896,000	674,000	456,000	335,000	355,000	383,000	383,000	317,000
Long-term debt	US$ in thousands	8,429,000	9,081,000	9,333,000	9,327,000	9,529,000	9,831,000	9,883,000	2,714,000	2,736,000	2,757,000	2,779,000	3,422,000	3,288,000	3,542,000	3,556,000	2,841,000	3,465,000	3,719,000	3,219,000	3,964,000
Total stockholders’ equity	US$ in thousands	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	10,000	8,677,000	6,112,000	5,250,000
Return on total capital		10.56%	9.38%	9.47%	11.39%	10.46%	8.97%	8.06%	40.54%	38.02%	42.95%	43.97%	36.34%	32.14%	22.10%	14.81%	14.33%	10.22%	3.09%	4.10%	3.44%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,122,000K ÷ ($8,429,000K + $2,197,000K)
= 10.56%

Gen Digital Inc.'s return on total capital has varied over the recent quarters. It ranged from 3.44% in July 2019 to a significant peak of 43.97% in September 2021. The return on total capital dipped to 3.09% in December 2019 but has since shown an upward trend. Noteworthy increases were seen in the most recent quarters, with a return of 10.56% in March 2024, indicating improved efficiency in generating profits relative to total capital employed. However, the return on total capital experienced fluctuations in the interim quarters. It is important for the company to sustain and further enhance its return on total capital to ensure sustainable growth and profitability.