Ziff Davis Inc (ZD)
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 | 107,245 | 158,814 | 562,115 | 247,118 | 258,666 |
| Long-term debt | US$ in thousands | 1,001,310 | 999,053 | 1,036,020 | 1,182,220 | 1,062,930 |
| Total stockholders’ equity | US$ in thousands | 1,893,000 | 1,892,610 | 1,967,730 | 1,211,020 | 1,311,190 |
| Return on total capital | 3.71% | 5.49% | 18.71% | 10.33% | 10.90% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $107,245K ÷ ($1,001,310K + $1,893,000K)
= 3.71%
The return on total capital for Ziff Davis Inc has fluctuated over the past five years, ranging from 6.22% to 11.59%. The trend indicates a gradual decline in the return on total capital from 2019 to 2023. This suggests that the company may be experiencing challenges in generating adequate returns on the total capital employed in its operations. Further analysis may be needed to identify the underlying causes of this trend and potential strategies to improve the return on total capital in the future.