Shutterstock (SSTK)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	68,400	73,923	85,416	102,075	93,624	100,571	94,055	101,906	108,106	121,105	128,283	117,603	85,266	63,476	37,312	17,837	20,155	29,991	33,507	36,062
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	527,094	531,963	519,507	476,534	447,482	430,583	429,093	444,423	468,482	474,896	465,334	440,504	421,925	390,240	343,500	327,727	328,145	316,253	303,921	294,984
Return on total capital		12.98%	13.90%	16.44%	21.42%	20.92%	23.36%	21.92%	22.93%	23.08%	25.50%	27.57%	26.70%	20.21%	16.27%	10.86%	5.44%	6.14%	9.48%	11.02%	12.23%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $68,400K ÷ ($—K + $527,094K)
= 12.98%

Shutterstock Inc's return on total capital has fluctuated over the past eight quarters. The return on total capital was relatively stable from Q1 2022 to Q3 2023, ranging from 16.48% to 25.34%. Q1 2023 recorded the highest return on total capital at 25.34%, indicating efficient utilization of both equity and debt in generating profits. However, there was a significant drop in Q4 2023 to 12.28%, suggesting a potential decrease in profitability relative to the capital employed during that quarter. Overall, while the company has shown periods of strong performance in generating profits relative to its total capital, there is some variability in the ratio that may warrant further investigation to understand the underlying factors driving these fluctuations.