Ziff Davis Inc (ZD)
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 | 139,717 | 107,245 | 158,814 | 562,115 | 247,118 |
| Long-term debt | US$ in thousands | 864,282 | 1,001,310 | 999,053 | 1,036,020 | 1,182,220 |
| Total stockholders’ equity | US$ in thousands | 1,810,880 | 1,893,000 | 1,892,610 | 1,967,730 | 1,211,020 |
| Return on total capital | 5.22% | 3.71% | 5.49% | 18.71% | 10.33% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $139,717K ÷ ($864,282K + $1,810,880K)
= 5.22%
The return on total capital for Ziff Davis Inc has displayed fluctuations over the past five years. In December 2020, the return on total capital stood at 10.33%, indicating that the company generated a return of 10.33% on its invested capital during that period. This figure experienced a significant improvement by December 2021, reaching 18.71%, suggesting a substantial increase in the efficiency of capital utilization.
However, there was a notable decline in the return on total capital by December 2022, dropping to 5.49%. This reduction may signal challenges in generating returns relative to the total capital employed. Furthermore, the return on total capital decreased further to 3.71% by December 2023, indicating a continued struggle in optimizing the efficiency of capital deployment.
By December 2024, there was a slight improvement in the return on total capital, reaching 5.22%. While this represents an increase from the previous year, it still indicates a lower return on total capital compared to the peak in 2021. Overall, the fluctuating trend in the return on total capital for Ziff Davis Inc suggests varying levels of success in generating returns on the total capital invested over the analyzed period.