Ziff Davis Inc (ZD)
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 | 132,611 | 145,349 | 187,702 | 194,694 | 198,941 | 190,877 | 206,853 | 171,021 | 167,340 | 14,561 | 46,989 | 109,974 | 138,340 | 127,113 | 109,034 | 92,608 | 88,223 | 253,519 | 251,217 | 248,986 |
| Long-term debt | US$ in thousands | 1,001,310 | 1,000,740 | 1,000,180 | 999,617 | 999,053 | 998,499 | 1,033,700 | 1,122,940 | 1,036,020 | 1,110,700 | 1,189,730 | 1,186,440 | 1,182,220 | 1,075,070 | 1,071,360 | 1,455,450 | 1,062,930 | 1,150,520 | 1,119,440 | 1,015,970 |
| Total stockholders’ equity | US$ in thousands | 1,893,000 | 1,804,140 | 1,862,680 | 1,894,620 | 1,892,610 | 1,793,640 | 1,794,200 | 1,865,490 | 1,967,730 | 1,369,260 | 1,294,500 | 1,274,910 | 1,211,020 | 1,176,340 | 1,263,170 | 1,241,080 | 1,311,190 | 1,084,370 | 1,072,100 | 1,056,650 |
| Return on total capital | 4.58% | 5.18% | 6.56% | 6.73% | 6.88% | 6.84% | 7.31% | 5.72% | 5.57% | 0.59% | 1.89% | 4.47% | 5.78% | 5.65% | 4.67% | 3.43% | 3.72% | 11.34% | 11.46% | 12.01% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $132,611K ÷ ($1,001,310K + $1,893,000K)
= 4.58%
The return on total capital for Ziff Davis Inc has been fairly consistent over the past eight quarters, ranging from a low of 2.62% in Q3 2022 to a high of 7.56% in Q4 2022. The company's return on total capital increased steadily from Q3 2022 to Q4 2022, indicating improved efficiency in generating profits relative to the total capital employed. However, there was a slight decrease in the most recent quarter, Q4 2023, where the return on total capital stood at 6.22%.
Overall, the trend suggests that Ziff Davis Inc has been effectively utilizing its capital to generate returns, although there may be fluctuations from quarter to quarter. It would be beneficial for the company to closely monitor and analyze the factors influencing the return on total capital to ensure sustained profitability and efficient capital allocation in the future.