QuinStreet Inc (QNST)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,033 | 690 | -11,580 | -21,303 | -29,716 | -33,321 | -27,385 | -25,363 | -20,310 | -17,095 | -14,608 | -12,990 | -4,397 | 2,547 | 7,666 | 15,032 | 14,013 | 10,971 | 8,751 | 10,275 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 244,044 | 235,475 | 224,252 | 219,818 | 216,825 | 214,964 | 215,253 | 222,336 | 229,801 | 284,527 | 279,796 | 283,256 | 286,000 | 301,463 | 298,645 | 299,695 | 295,550 | 288,567 | 279,406 | 273,288 |
| Return on total capital | 2.47% | 0.29% | -5.16% | -9.69% | -13.71% | -15.50% | -12.72% | -11.41% | -8.84% | -6.01% | -5.22% | -4.59% | -1.54% | 0.84% | 2.57% | 5.02% | 4.74% | 3.80% | 3.13% | 3.76% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $6,033K ÷ ($—K + $244,044K)
= 2.47%
The analysis of QuinStreet Inc’s return on total capital (ROTC) over the specified period reveals significant fluctuations indicative of evolving operational and financial dynamics. Initially, the company demonstrated a modest positive ROTC, with values such as 3.76% on September 30, 2020, and 3.13% on December 31, 2020, progressing to a peak of 5.02% on September 30, 2021. This trend suggests periods of effective capital utilization and profitability during the early stages of the sample timeline.
However, beginning in late 2021 and extending into 2022 and 2023, a consistent decline in ROTC is observed, transitioning into negative territory. By March 31, 2022, the ratio had fallen to 0.84%, and subsequent data points depict a worsening trend, with ROTC reaching as low as -12.72% on December 31, 2023. This sustained decline indicates increasing challenges in generating returns from total capital employed, potentially reflecting operational difficulties, declining revenues, or increased costs impacting overall profitability.
Interestingly, beginning in the first quarter of 2025, there is an observable turnaround, with ROTC shifting into positive territory at 0.29%, and further improving to 2.47% by June 30, 2025. This suggests a potential recovery or strategic adjustments that have begun to enhance the company's ability to generate returns on its invested capital, although these figures remain below historical peaks.
Overall, the trend denotes a period of de-growth in profitability relative to total capital, with a notable bottoming out and tentative signs of improvement. This pattern underscores the importance of reviewing underlying operational strategies, market conditions, and external factors influencing QuinStreet Inc’s capital efficiency over the course of these periods.
Peer comparison
Jun 30, 2025