Shutterstock (SSTK)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 68,400 | 93,624 | 108,106 | 85,266 | 20,155 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 527,094 | 447,482 | 468,482 | 421,925 | 328,145 |
| Return on total capital | 12.98% | 20.92% | 23.08% | 20.21% | 6.14% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $68,400K ÷ ($—K + $527,094K)
= 12.98%
Shutterstock Inc's return on total capital has exhibited fluctuations over the five-year period from 2019 to 2023. The ratio decreased from 6.14% in 2019 to 20.21% in 2020, reflecting a significant improvement in the company's efficiency in generating profits relative to its total capital investments. Subsequently, the return on total capital further increased to 23.08% in 2021, indicating continued growth in profitability.
However, there was a notable decline in the return on total capital to 22.57% in 2022 and further to 12.28% in 2023. These decreases may suggest a potential reduction in the company's ability to generate returns on its total capital investments compared to the previous years. Further analysis is recommended to assess the factors contributing to these fluctuations and to determine the company's overall financial health and performance.
Peer comparison
Dec 31, 2023