Liveramp Holdings Inc (RAMP)

Return on total capital

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 Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 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 -177,279
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 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 1,087,510
Return on total capital 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% -16.30%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $8,459K ÷ ($—K + $957,707K)
= 0.88%

Return on total capital is a financial metric that indicates the efficiency and profitability of a company in generating returns from its total invested capital. Liveramp Holdings Inc experienced a declining trend in its return on total capital from March 2020 to September 2022, with negative values ranging from -16.30% to -8.47%. This indicates that during this period, the company's capital investments were not yielding favorable returns.

However, there was a noticeable improvement in the company's return on total capital starting from March 2024, as the percentage turned positive. From March 2024 to December 2024, Liveramp Holdings Inc managed to achieve positive return on total capital values, ranging from 0.36% to 3.14%. This shift suggests that the company started generating better returns from its invested capital, which can be a positive sign for investors and stakeholders.