Liquidity Services Inc (LQDT)
Return on total capital
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 23,403 | 24,016 | 24,376 | 23,027 | 26,107 | 29,473 | 39,913 | 47,650 | 47,406 | 44,471 | 34,370 | 27,025 | 27,168 | 24,205 | 15,809 | 5,719 | -3,897 | -14,631 | -19,390 | -19,423 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 182,560 | 171,970 | 163,925 | 165,379 | 161,533 | 155,809 | 151,074 | 154,953 | 154,536 | 144,669 | 132,989 | 137,079 | 135,015 | 116,561 | 106,938 | 115,063 | 111,815 | 110,238 | 108,112 | 112,437 |
| Return on total capital | 12.82% | 13.97% | 14.87% | 13.92% | 16.16% | 18.92% | 26.42% | 30.75% | 30.68% | 30.74% | 25.84% | 19.71% | 20.12% | 20.77% | 14.78% | 4.97% | -3.49% | -13.27% | -17.94% | -17.27% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $23,403K ÷ ($—K + $182,560K)
= 12.82%
Liquidity Services Inc's return on total capital has exhibited fluctuations over the past few quarters. The return on total capital ranged from a low of -17.94% in March 2020 to a high of 30.75% in December 2022. The return on total capital improved significantly from negative territory in 2020 to positive territory in subsequent quarters.
The return on total capital peaked at 30.75% in December 2022, signifying the company's ability to generate profits relative to its total capital employed. However, the return on total capital showed a slight decrease in the most recent quarter to 12.82% in September 2024.
Overall, Liquidity Services Inc's return on total capital has shown volatility, with some periods of strong profitability followed by declines. It is important for investors and financial analysts to monitor this metric closely to understand the company's efficiency in generating returns from its capital investments.
Peer comparison
Sep 30, 2024