Tidewater Inc (TDW)

Return on total capital

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	293,066	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
Long-term debt	US$ in thousands	597,352	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
Total stockholders’ equity	US$ in thousands	1,116,480	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
Return on total capital		17.10%	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%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $293,066K ÷ ($597,352K + $1,116,480K)
= 17.10%

Tidewater Inc's return on total capital has shown a positive trend over the recent quarters, increasing from 7.90% in Q3 2023 to 17.10% in Q3 2024. This indicates an improvement in the company's ability to generate returns from its capital investments.

The company's return on total capital was negative in the earlier quarters of 2021 and 2022, reaching a low of -20.79% in Q1 2021. However, Tidewater Inc has managed to turn this around and has achieved positive returns in the last few quarters.

Overall, the upward trend in return on total capital reflects positively on Tidewater Inc's capital efficiency and profitability, indicating effective utilization of capital resources to generate returns for shareholders.