N-Able Inc (NABL)

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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	70,319	62,817	56,189	50,652	47,396	41,585	39,635	39,219
Long-term debt	US$ in thousands	331,509	331,980	332,450	333,007	333,488	333,959	334,429	334,902	335,379	335,846	—
Total stockholders’ equity	US$ in thousands	711,360	674,680	668,907	656,195	642,071	594,132	605,994	618,556	618,355	617,907	633,275
Return on total capital		6.74%	6.24%	5.61%	5.12%	4.86%	4.48%	4.21%	4.11%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $70,319K ÷ ($331,509K + $711,360K)
= 6.74%

N-Able Inc's return on total capital has shown a consistent upward trend over the past several quarters. The company's return on total capital has increased from 4.11% in the first quarter of 2022 to 6.74% in the fourth quarter of 2023. This indicates that N-Able Inc has been able to generate more profit relative to its total capital employed in the business.

The increasing trend in return on total capital suggests that the company is effectively utilizing its capital to generate profits. This may be attributed to improved operational efficiency, effective cost management, or successful investment decisions. The consistent growth in return on total capital is a positive signal for investors and indicates that N-Able Inc is managing its capital resources effectively and improving its overall financial performance.