VeriSign Inc (VRSN)

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	1,000,600	943,100	866,800	824,200	806,127
Long-term debt	US$ in thousands	1,790,200	1,787,900	1,785,700	1,790,080	1,787,560
Total stockholders’ equity	US$ in thousands	-1,581,000	-1,562,200	-1,260,500	-1,390,200	-1,490,100
Return on total capital		478.30%	417.86%	165.04%	206.11%	271.00%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,000,600K ÷ ($1,790,200K + $-1,581,000K)
= 478.30%

Verisign Inc.'s return on total capital has shown considerable variation over the past five years. In 2023, the return on total capital was significantly high at 478.30%, indicating that for every dollar of total capital invested, the company generated almost five times that amount in profit. This represents a substantial improvement from the previous year's figure of 417.86%.

In 2021, the return on total capital was 165.05%, which was lower compared to the following years but still indicative of a healthy return on investment. The returns were relatively higher in 2020 and 2019 at 206.11% and 271.00%, respectively.

The fluctuation in return on total capital could be attributed to various factors such as changes in business strategy, economic conditions, or investment decisions. Overall, the upward trend in recent years indicates that Verisign Inc. has been efficient in generating returns on the total capital employed in its operations.