Shutterstock (SSTK)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 68,708 | 68,400 | 93,624 | 108,106 | 85,266 |
| Long-term debt | US$ in thousands | 119,598 | 0 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 518,350 | 527,094 | 447,482 | 468,482 | 421,925 |
| Return on total capital | 10.77% | 12.98% | 20.92% | 23.08% | 20.21% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $68,708K ÷ ($119,598K + $518,350K)
= 10.77%
Based on the data provided, Shutterstock's return on total capital has exhibited fluctuations over the years. In December 2020, the return on total capital stood at 20.21%, showing a positive performance. Subsequently, there was an improvement as of December 2021, with the return on total capital increasing to 23.08%, indicating better utilization of the company's capital. However, by December 2022, the return on total capital slightly declined to 20.92%, still relatively strong but showing a slight decrease compared to the previous year.
The trend changed notably in December 2023, where the return on total capital dropped significantly to 12.98%. This decrease could indicate potential challenges in efficiently deploying capital or generating returns during that period. By December 2024, there was a further decline in the return on total capital to 10.77%, signifying a continued downward trend in the company's capital efficiency.
Overall, while Shutterstock has maintained a generally favorable return on total capital during the earlier years of the analysis period, there has been a notable decline in performance in the later years. This may suggest the need for the company to assess and potentially optimize its capital deployment strategies to enhance overall capital efficiency and profitability in the future.
Peer comparison
Dec 31, 2024