Nextracker Inc. Class A Common Stock (NXT)

Return on total capital

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	587,118	357,026	267,216
Long-term debt	US$ in thousands	143,967	144,762	145,557	147,289	147,147	—
Total stockholders’ equity	US$ in thousands	961,013	-3,117,010	-2,641,020	-3,352,380	-3,075,770	0
Return on total capital		53.13%	—	—

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $587,118K ÷ ($143,967K + $961,013K)
= 53.13%

Based on the available data, Nextracker Inc. Class A Common Stock's return on total capital for the quarter ending March 31, 2024, was 53.13%. Unfortunately, there is no data provided for the return on total capital for previous quarters.

Return on total capital is a key financial ratio that measures a company's ability to generate profits from its total capital employed, including both debt and equity. A higher return on total capital indicates that the company is effectively utilizing its capital to generate profits for its shareholders.

In this case, the return on total capital of 53.13% for the latest period is quite high, suggesting that Nextracker Inc. is efficiently utilizing its total capital to generate profits. However, without historical data for comparison, it is challenging to assess the trend in the company's return on total capital over time.

To gain a more comprehensive understanding of Nextracker Inc.'s financial performance and sustainability of its return on total capital, it would be beneficial to track this ratio over multiple periods and compare it to industry benchmarks or peers.