Manhattan Associates Inc (MANH)

Return on total capital

		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	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	261,596	259,773	238,131	220,426	209,881	195,721	179,043	165,813	152,700	135,138	140,776	142,880	134,333	135,387	127,955	115,290	114,061	110,933	110,954	111,844
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	299,126	277,951	240,629	239,607	278,278	210,105	170,550	181,072	226,800	198,134	208,735	217,136	250,644	238,627	212,450	204,660	218,897	187,977	152,778	125,869
Return on total capital		87.45%	93.46%	98.96%	91.99%	75.42%	93.15%	104.98%	91.57%	67.33%	68.21%	67.44%	65.80%	53.60%	56.74%	60.23%	56.33%	52.11%	59.01%	72.62%	88.86%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $261,596K ÷ ($—K + $299,126K)
= 87.45%

Manhattan Associates Inc's return on total capital has displayed fluctuations over the periods provided. The trend indicates a general decline from the high of 88.86% in March 2020 to the low of 52.11% in December 2020. Subsequently, there was a mixed pattern of increase and decrease until June 2022 where it peaked at 67.44%. Thereafter, the return on total capital saw a more consistent rise, reaching its highest point of 104.98% in June 2023. However, the ratio experienced a notable drop in the following quarter and continued to fluctuate until December 2024, where it settled at 87.45%.

This analysis suggests that Manhattan Associates Inc has been able to effectively utilize its total capital to generate returns for its shareholders over the periods covered, with periods of both growth and decline. The company's ability to maintain relatively high returns on total capital indicates efficient capital management and operational performance, although sustained monitoring and strategic adjustments may be necessary to navigate the fluctuations observed.