ViaSat Inc (VSAT)

Return on total capital

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	-807,980	1,161,030	-22,660	25,184	38,421
Long-term debt	US$ in thousands	4,354,710	1,689,190	1,686,220	1,683,260	1,285,500
Total stockholders’ equity	US$ in thousands	5,025,430	3,824,310	2,633,870	2,351,470	2,027,790
Return on total capital		-8.61%	21.06%	-0.52%	0.62%	1.16%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-807,980K ÷ ($4,354,710K + $5,025,430K)
= -8.61%

ViaSat Inc's return on total capital has been fluctuating over the past five years. In March 2024, the return on total capital was -8.61%, indicating that the company experienced a negative return on the total capital invested in its operations. This represents a significant decline from the previous year, where the return on total capital stood at 21.06%.

The negative return on total capital in 2024 suggests that ViaSat Inc may not have effectively utilized its total capital to generate profits during that period. Furthermore, the -8.61% return may raise concerns among investors and stakeholders about the company's financial performance and operational efficiency.

In contrast, the return on total capital in the preceding years, while also fluctuating, generally remained positive, albeit on a lower scale. The company saw a substantial improvement in the return on total capital from the negative territories in 2020 and 2021 to a positive return in 2022 and 2023.

Overall, ViaSat Inc's return on total capital has been volatile, with the company experiencing both positive and negative returns in recent years. The negative return on total capital in 2024 highlights the importance of closely monitoring the company's capital allocation strategies and operational performance to improve profitability and sustainability in the long term.