Match Group Inc (MTCH)
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 | 916,896 | 515,005 | 851,679 | 745,715 | 645,454 |
| Long-term debt | US$ in thousands | 3,842,240 | 3,835,730 | 3,829,420 | 3,840,930 | 2,889,630 |
| Total stockholders’ equity | US$ in thousands | -19,548 | -359,875 | -203,769 | -1,414,420 | 2,928,040 |
| Return on total capital | 23.99% | 14.82% | 23.49% | 30.73% | 11.09% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $916,896K ÷ ($3,842,240K + $-19,548K)
= 23.99%
Return on total capital is a key financial metric that indicates how efficiently a company is utilizing all of its available capital to generate profits. In the case of Match Group Inc., the return on total capital has fluctuated over the past five years.
In 2023, Match Group Inc. achieved a return on total capital of 23.99%, showing an increase from the previous year's 14.82%. This indicates that the company was able to generate more profit relative to its total capital employed in 2023 compared to 2022.
Looking back further, in 2021 and 2020, Match Group Inc. also demonstrated strong returns on total capital of 22.86% and 31.64% respectively. These figures suggest that the company was efficient in generating profits relative to its total capital in those years.
However, in 2019, Match Group Inc. had a lower return on total capital of 9.64%, indicating that the company was less efficient in utilizing its total capital to generate profits.
Overall, Match Group Inc. has shown improvements in its return on total capital in recent years, with 2023 demonstrating a significant increase compared to the prior year. This trend suggests that the company is becoming more efficient in generating profits relative to the capital it employs, which could be a positive indicator for investors and stakeholders.
Peer comparison
Dec 31, 2023