Match Group Inc (MTCH)
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 | 916,896 | 763,277 | 730,353 | 505,476 | 515,005 | 640,289 | 650,244 | 870,239 | 851,679 | 832,344 | 811,921 | 797,601 | 380,995 | 349,762 | 318,372 | 290,866 | 574,448 | 527,019 | 513,384 | 622,405 |
| Long-term debt | US$ in thousands | 3,842,240 | 3,840,590 | 3,838,940 | 3,837,320 | 3,835,730 | 3,834,120 | 3,832,530 | 3,830,960 | 3,829,420 | 3,847,900 | 3,845,560 | 3,843,240 | 3,840,930 | 3,521,090 | 3,527,660 | 3,625,010 | 2,889,630 | 3,111,880 | 3,138,530 | 2,332,230 |
| Total stockholders’ equity | US$ in thousands | -19,548 | -299,438 | -177,927 | -334,518 | -359,875 | -699,342 | -452,945 | -122,449 | -203,769 | -68,352 | -142,245 | -1,214,590 | -1,414,420 | -1,442,930 | -1,708,180 | 2,424,410 | 2,928,040 | 2,897,270 | 2,983,460 | 2,779,860 |
| Return on total capital | 23.99% | 21.55% | 19.95% | 14.43% | 14.82% | 20.43% | 19.24% | 23.47% | 23.49% | 22.02% | 21.92% | 30.34% | 15.70% | 16.83% | 17.50% | 4.81% | 9.87% | 8.77% | 8.39% | 12.18% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 generating profits from its total invested capital, including both debt and equity. The trend analysis of Match Group Inc.'s return on total capital reveals fluctuations over the past eight quarters.
In Q4 2023, the return on total capital increased significantly to 23.99%, marking a sharp improvement from the previous quarter's 21.55%. This suggests that Match Group Inc. was able to generate a higher return for its capital in the most recent quarter.
Looking further back, in Q3 and Q2 of 2023, the return on total capital remained relatively stable at 21.55% and 19.95% respectively, indicating consistent operational efficiency during that period. However, there was a notable decline in Q1 2023 to 14.43%, suggesting a temporary decrease in profitability compared to the previous quarters.
Comparing the Q4 results of 2023 to the same quarter in the previous year, there was a positive improvement in return on total capital from 14.82% in Q4 2022 to 23.99% in Q4 2023, signaling potential growth and enhanced capital utilization efficiency for Match Group Inc.
Overall, despite some fluctuations, Match Group Inc. has generally demonstrated a strong ability to generate returns on its total invested capital, with Q4 2023 showing a notable improvement in performance.
Peer comparison
Dec 31, 2023