VeriSign Inc (VRSN)

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	1,037,700	1,026,900	1,001,200	977,400	949,900	926,500	906,200	879,600	865,300	847,707	833,731	836,914	839,462	833,521	842,211	841,157	840,264	835,664	820,482	801,023
Long-term debt	US$ in thousands	1,790,200	1,789,600	1,789,000	1,788,500	1,787,900	1,787,400	1,786,800	1,786,300	1,785,700	1,785,150	1,784,650	1,790,710	1,790,080	1,789,450	1,788,820	1,788,190	1,787,560	1,786,940	1,786,310	1,785,680
Total stockholders’ equity	US$ in thousands	-1,581,000	-1,633,400	-1,617,900	-1,593,800	-1,562,200	-1,542,400	-1,455,000	-1,285,100	-1,260,500	-1,417,600	-1,417,900	-1,403,800	-1,390,200	-1,386,250	-1,400,320	-1,409,110	-1,490,100	-1,451,920	-1,425,170	-1,406,130
Return on total capital		496.03%	657.43%	585.15%	502.00%	420.87%	378.16%	273.12%	175.50%	164.76%	230.64%	227.33%	216.31%	209.93%	206.73%	216.79%	221.89%	282.48%	249.44%	227.19%	211.05%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,037,700K ÷ ($1,790,200K + $-1,581,000K)
= 496.03%

Verisign Inc.'s return on total capital has shown a consistent upward trend over the past eight quarters. The company's return on total capital has significantly improved from 175.82% in Q1 2022 to 478.30% in Q4 2023. This indicates that the company has been effectively utilizing its total capital to generate profits and create value for its shareholders.

The continuous increase in return on total capital reflects Verisign's ability to efficiently allocate its resources and generate higher returns on its invested capital. This performance is noteworthy and suggests that the company has been successful in optimizing its capital structure and operational efficiency.

Overall, the sustained improvement in return on total capital showcases Verisign Inc.'s strong financial performance and effective management of capital resources, which bodes well for the company's long-term growth and sustainability.