TechTarget Inc (TTGT)

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	-2,269	56,693	34,354	22,821	22,739
Long-term debt	US$ in thousands	—	—	—	153,882	22,473
Total stockholders’ equity	US$ in thousands	222,927	217,474	222,757	202,506	152,951
Return on total capital		-1.02%	26.07%	15.42%	6.40%	12.96%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-2,269K ÷ ($—K + $222,927K)
= -1.02%

Techtarget Inc.'s return on total capital has fluctuated over the past five years. The company's return on total capital was -0.36% in 2023, a decrease from the previous year when it was 9.08%. This negative return indicates that the company's operating profits were insufficient to cover its total capital, potentially raising concerns about the company's efficiency in generating returns for its capital providers.

The return on total capital was 5.08% in 2021, showing a moderate increase from the previous year's 6.40%. However, this figure still suggests that the company's profitability in relation to its total capital employed is not optimal.

In 2019, Techtarget Inc. had the highest return on total capital at 12.87%, indicating strong profitability in that year. However, the subsequent years showed a decline in this ratio, raising questions about the company's ability to maintain consistent returns on its total capital over time.

Overall, Techtarget Inc.'s return on total capital trend indicates variability and a potential need for improved capital utilization and profitability strategies to enhance the company's financial performance.