Manhattan Associates Inc (MANH)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	209,881	152,700	134,333	114,061	115,924
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	278,278	226,800	250,644	218,897	142,278
Return on total capital		75.42%	67.33%	53.60%	52.11%	81.48%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $209,881K ÷ ($—K + $278,278K)
= 75.42%

Manhattan Associates, Inc.'s return on total capital has shown fluctuating trends over the past five years. In 2023, the company achieved a return on total capital of 75.42%, marking a significant increase compared to the previous year's 67.33%. This indicates that the company was able to generate more profits relative to its total capital invested, reflecting improved operational efficiency or better utilization of resources.

Looking back further, Manhattan Associates, Inc. experienced a notable decline in return on total capital from 2019 to 2021, dropping from 81.48% to 53.60%. However, the company managed to enhance its performance in 2022 and 2023, surpassing the return on total capital achieved in 2019.

Overall, Manhattan Associates, Inc. has demonstrated a generally strong ability to generate returns in relation to its total capital base over the years, with some fluctuations in performance. This indicates management effectiveness in deploying capital efficiently to drive profitability within the business. Further analysis of the company's financial and operational strategies would be necessary to understand the underlying factors driving these fluctuations in return on total capital.