Qualys Inc (QLYS)

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	163,069	155,997	146,240	135,535	133,700	129,003	127,216	124,943	89,397	84,783	80,367	77,637	102,060	98,284	95,051	86,469	80,128	73,683	68,585	61,866
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	368,174	322,917	277,018	267,822	289,129	355,186	396,838	426,635	436,714	402,986	392,995	397,108	404,482	400,299	407,774	386,730	386,803	361,023	383,598	373,403
Return on total capital		44.29%	48.31%	52.79%	50.61%	46.24%	36.32%	32.06%	29.29%	20.47%	21.04%	20.45%	19.55%	25.23%	24.55%	23.31%	22.36%	20.72%	20.41%	17.88%	16.57%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $163,069K ÷ ($—K + $368,174K)
= 44.29%

Qualys Inc has demonstrated a consistent improvement in its return on total capital over the past several quarters, indicating efficient utilization of its capital resources. The trend reveals a positive trajectory with the return on total capital increasing from 29.05% in Q1 2022 to 51.27% in Q2 2023, before slightly declining to 44.29% in Q4 2023. This pattern suggests that Qualys Inc has been effective in generating profits relative to the total capital invested in the company. Overall, the company's strong return on total capital performance reflects its ability to generate value for shareholders and optimize its capital structure.