Tidewater Inc (TDW)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	278,794	239,614	182,215	132,238	95,624	58,517	26,708	-13,402	-54,026	-76,025	-95,016	-93,372	-96,984	-194,570	-186,802	-211,493	-208,868	-95,517	-86,604	-106,642
Long-term debt	US$ in thousands	607,998	620,329	631,361	641,301	179,573	169,423	169,036	168,649	168,279	167,997	167,885	14,139	148,612	148,337	164,934	246,179	273,215	273,015	279,044	419,905
Total stockholders’ equity	US$ in thousands	1,081,250	1,056,980	1,039,240	1,032,730	893,083	873,313	865,968	846,639	840,717	689,379	701,303	734,001	758,978	787,766	822,115	852,240	888,509	997,364	1,014,800	1,075,430
Return on total capital		16.50%	14.29%	10.91%	7.90%	8.91%	5.61%	2.58%	-1.32%	-5.35%	-8.87%	-10.93%	-12.48%	-10.69%	-20.79%	-18.93%	-19.25%	-17.98%	-7.52%	-6.69%	-7.13%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $278,794K ÷ ($607,998K + $1,081,250K)
= 16.50%

The return on total capital for Tidewater Inc has shown a fluctuating trend over the past several quarters. In the most recent quarter ending June 30, 2024, the return on total capital was 16.50%, indicating a strong performance in generating returns relative to the total capital employed. This represents an improvement compared to the previous quarter at 14.29%.

Looking further back, Tidewater's return on total capital has been gradually increasing since the end of 2021, where it was -10.93%, reaching positive figures and improving steadily. This positive trend suggests that the company has been more effective in generating returns on the total capital invested in the business.

However, it is worth noting that there were periods of negative returns on total capital in the past, such as in the quarters ending September 30, 2022, and December 31, 2021, where the returns were -1.32% and -7.13% respectively. These negative returns indicate that in those periods, the company was not effectively utilizing its total capital to generate profits.

In conclusion, the recent improvement in return on total capital for Tidewater Inc is a positive indicator of the company's efficiency in utilizing its total capital to generate returns for its investors.