VeriSign Inc (VRSN)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	1,058,200	1,000,600	943,100	866,800	824,200
Long-term debt	US$ in thousands	1,492,500	1,790,200	1,787,900	1,785,700	1,790,080
Total stockholders’ equity	US$ in thousands	-1,957,900	-1,581,000	-1,562,200	-1,260,500	-1,390,200
Return on total capital		—	478.30%	417.86%	165.04%	206.11%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,058,200K ÷ ($1,492,500K + $-1,957,900K)
= —

VeriSign Inc's return on total capital has demonstrated significant fluctuations over the years. In 2020, the return on total capital stood at an impressive 206.11%, indicating efficient capital utilization. However, there was a slight decrease in 2021 to 165.04%, which suggests a potential decrease in profitability or efficiency in capital allocation.

The return on total capital then surged in 2022 to 417.86%, reflecting a substantial improvement in capital efficiency and potentially enhanced profitability. This upward trend continued into 2023, with the return on total capital reaching 478.30%, indicating a strong performance in terms of generating returns from total capital employed.

However, the data for 2024 shows a dash indicating that the return on total capital is not available for that year. It is crucial for stakeholders to seek further information or clarification on the reason for this missing data point in order to gain a comprehensive understanding of VeriSign Inc's capital efficiency and profitability trends.

Overall, VeriSign Inc's return on total capital has shown notable fluctuations over the years, with periods of both improvement and potential challenges in capital utilization and profitability. Stakeholders should closely monitor future financial performance to assess the company's ability to effectively utilize its total capital for sustainable returns.