Liveramp Holdings Inc (RAMP)

Return on total capital

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 Jun 30, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 17,664 8,459 15,445 22,343 29,771 -3,416 -37,430 -66,902 -94,151 -79,775 -81,355 -72,847 -64,543 -88,839 -90,839 -111,935 -120,920 -107,832 -133,298 -156,248
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 948,859 957,707 932,057 951,876 949,135 946,490 921,858 918,531 926,076 911,609 960,069 1,005,750 1,063,060 1,070,410 1,072,950 1,080,600 1,080,680 1,058,500 1,050,860 1,058,290
Return on total capital 1.86% 0.88% 1.66% 2.35% 3.14% -0.36% -4.06% -7.28% -10.17% -8.75% -8.47% -7.24% -6.07% -8.30% -8.47% -10.36% -11.19% -10.19% -12.68% -14.76%

March 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $17,664K ÷ ($—K + $948,859K)
= 1.86%

The return on total capital for Liveramp Holdings Inc has shown a declining trend from June 2020 to December 2024. It started at a negative value of -14.76% in June 2020, steadily decreasing to -0.36% in December 2023. This negative trend indicates that the company was not generating sufficient returns relative to the total capital invested during this period.

However, there was a positive turn in the trend starting from March 2024, where the return on total capital became positive at 3.14%. This positive value indicates that the company started generating returns that exceeded the total capital invested, showing signs of improvement in the company's performance.

Subsequently, the return on total capital continued to be positive in the following quarters until March 2025, reaching a value of 1.86%. This positive trend indicates that Liveramp Holdings Inc has been able to generate returns above the total capital invested, reflecting improved efficiency and profitability.

Overall, the analysis demonstrates the company's transition from negative returns on total capital to a positive trend, indicating potential improvements in its financial performance and operational efficiency in generating returns for its capital providers.