TechTarget Inc (TTGT)

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	-2,269	9,950	27,861	46,326	56,693	60,244	48,996	41,815	34,354	28,176	27,516	22,457	22,820	22,297	22,736	21,949	22,740	21,624	18,097	18,402
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	195,631	195,303	194,976	153,882	21,066	21,540	22,007	22,473	22,784	23,094	23,404
Total stockholders’ equity	US$ in thousands	222,927	209,008	202,297	210,022	217,474	229,838	238,402	241,196	222,757	208,521	193,832	182,138	202,506	162,256	153,546	145,375	152,951	147,771	141,380	135,125
Return on total capital		-1.02%	4.76%	13.77%	22.06%	26.07%	26.21%	20.55%	17.34%	15.42%	6.97%	7.07%	5.95%	6.40%	12.16%	12.99%	13.11%	12.96%	12.68%	11.00%	11.61%

December 31, 2023 calculation

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

Techtarget Inc.'s return on total capital has shown fluctuations over the past eight quarters. In Q4 2023, the company reported a negative return on total capital of -0.36%, indicating that the company's total capital generated a loss during that period. However, in the previous quarters, the return on total capital was positive, with Q1 2023 showing the highest return at 7.62%.

The trend in return on total capital displays a general decline from Q1 2023 to Q4 2023. This suggests that the company's ability to generate profit from its total invested capital has weakened in recent quarters. It would be important to investigate the factors behind this trend and assess the company's efficiency in utilizing its capital resources effectively to generate returns for its investors.