Liquidity Services Inc (LQDT)

Return on total capital

		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	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	-19,508	-20,412	-19,075
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	116,175	121,113	124,465
Return on total capital		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%	-16.79%	-16.85%	-15.33%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $23,027K ÷ ($—K + $165,379K)
= 13.92%

Liquidity Services Inc's return on total capital has shown fluctuating performance over the past eight quarters. The return on total capital ranged from 13.92% in Q1 2024 to 20.55% in Q2 2022, indicating variability in the company's ability to generate returns relative to its total capital employed. The average return on total capital over the period appears to be comparatively higher in Q2 and Q3 2022, but decreased in the subsequent quarters. This suggests that the company may have experienced changes in its capital utilization efficiency or profitability factors during the timeframe analyzed. Further analysis is recommended to identify the underlying factors contributing to these fluctuations in return on total capital.