QuinStreet Inc (QNST)

Return on total capital

		Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-29,760	-33,373	-27,410	-25,388	-20,597	-17,664	-15,165	-13,557	-4,702	2,433	7,564	14,898	30,590	27,647	35,954	37,520	19,382	21,008	5,608	7,307
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	216,825	214,964	215,253	222,336	229,801	284,527	279,796	283,256	286,000	301,463	298,645	299,695	295,148	288,567	279,406	273,288	255,944	249,207	233,871	228,091
Return on total capital		-13.73%	-15.52%	-12.73%	-11.42%	-8.96%	-6.21%	-5.42%	-4.79%	-1.64%	0.81%	2.53%	4.97%	10.36%	9.58%	12.87%	13.73%	7.57%	8.43%	2.40%	3.20%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-29,760K ÷ ($—K + $216,825K)
= -13.73%

The return on total capital for QuinStreet Inc has fluctuated over the past quarters. The company experienced negative returns on total capital in the recent quarters, with the lowest being -15.52% in March 2024. However, there was a slight improvement in the most recent period, with a return of -13.73% in June 2024.

Looking at the trend over the past two years, the return on total capital showed a general upward trajectory from a low of -4.79% in September 2022 to a peak of 13.73% in December 2020. The return then declined before showing some recovery in the recent quarters.

It is important for QuinStreet Inc to closely monitor and analyze the factors influencing its return on total capital to work towards optimizing its capital allocation and improving profitability.