Liveramp Holdings Inc (RAMP)

Return on total capital

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	11,404	-125,800	-65,538	-120,548	-180,922
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	949,135	926,076	1,063,060	1,080,680	1,087,510
Return on total capital		1.20%	-13.58%	-6.17%	-11.15%	-16.64%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $11,404K ÷ ($—K + $949,135K)
= 1.20%

Return on total capital is a key financial ratio that measures a company's ability to generate returns from all forms of capital employed in its operations. Liveramp Holdings Inc's return on total capital has fluctuated over the past five years.

In the most recent fiscal year ending March 31, 2024, Liveramp Holdings Inc reported a return on total capital of 1.20%, indicating a modest profitability on the total capital employed. This represents an improvement from the previous year's negative return on total capital of -13.58%, suggesting that the company was able to generate positive returns on its capital in the current year.

Looking further back, the return on total capital for Liveramp Holdings Inc was negative in the three preceding years: -6.17% in 2022, -11.15% in 2021, and -16.64% in 2020. These negative ratios indicate that the company was not effectively utilizing its total capital to generate profits during those years.

Overall, Liveramp Holdings Inc's return on total capital has shown improvement in the most recent year, but it still remains relatively low compared to earlier years. The company may need to focus on optimizing its capital allocation and operational efficiency to enhance its returns on capital in the future.