Twilio Inc (TWLO)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 42,967 | -16,868 | -88,613 | -434,709 | -571,018 | -710,218 | -996,729 | -857,300 | -1,196,087 | -1,350,819 | -1,243,632 | -1,313,159 | -1,053,752 | -949,012 | -924,319 | -823,736 | -714,274 | -591,946 | -479,446 | -373,018 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,043,920 | 8,004,290 | 7,952,970 | 8,228,870 | 8,679,470 | 9,447,730 | 9,732,550 | 9,979,380 | 9,976,560 | 10,318,900 | 10,559,000 | 10,530,900 | 10,842,000 | 10,917,400 | 11,031,500 | 11,081,700 | 10,694,100 | 10,247,200 | 8,452,660 | 5,762,270 |
| Return on total capital | 0.53% | -0.21% | -1.11% | -5.28% | -6.58% | -7.52% | -10.24% | -8.59% | -11.99% | -13.09% | -11.78% | -12.47% | -9.72% | -8.69% | -8.38% | -7.43% | -6.68% | -5.78% | -5.67% | -6.47% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $42,967K ÷ ($—K + $8,043,920K)
= 0.53%
The analysis of Twilio Inc.'s return on total capital (ROTC) over the period from September 2020 to June 2025 reveals a consistent pattern of negative returns, indicating ongoing challenges with profitability relative to the total capital invested in the company. Throughout this timeframe, the ROTC fluctuated within a range from approximately -13.09% in March 2023 to a near break-even point of 0.53% projected for June 2025.
Initially, the company experienced a decline in ROTC, beginning at -6.47% in September 2020 and progressively worsening, reaching a low of -13.09% by March 2023. This sustained negative trajectory signifies that Twilio's operations during this period were not generating sufficient returns to cover its total capital, reflecting ongoing inefficiencies, high costs, or investments that have yet to mature into profitable revenues.
From March 2023 onward, there is an observable trend of gradual improvement in ROTC, moving from -13.09% to -11.99% in June 2023, then further to -8.59% in September 2023, and reaching -10.24% by December 2023. The most notable development occurs in the subsequent quarters, with the ROTC progressively approaching zero, forecasted at -0.21% in March 2025 and projected to turn positive at 0.53% by June 2025. This transition toward a positive return suggests a potential turnaround in operational efficiency and profitability, possibly driven by strategic adjustments, cost management, or revenue growth.
Overall, Twilio's historical and projected ROTC indicates that the company's capital productivity has been suboptimal, although recent and near-term forecasts imply an emerging trend toward improved profitability. The trajectory from negative to positive returns reflects a possibly favorable shift in operational performance, but the data still underscores an era of significant challenges prior to the anticipated realization of positive returns on total capital.
Peer comparison
Jun 30, 2025