ACADIA Pharmaceuticals Inc (ACAD)

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	84,279	-73,379	-223,596	-170,439	-286,586
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	732,793	431,755	400,413	540,894	627,009
Return on total capital		11.50%	-17.00%	-55.84%	-31.51%	-45.71%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $84,279K ÷ ($—K + $732,793K)
= 11.50%

The return on total capital for ACADIA Pharmaceuticals Inc has shown fluctuating trends over the past five years. As of December 31, 2020, the return on total capital was at a negative 45.71%, indicating that the company was not generating sufficient returns relative to its total capital employed.

In the following year, as of December 31, 2021, the return on total capital improved slightly to -31.51%, but still remained negative, suggesting that the company continued to face challenges in efficiently utilizing its capital resources.

By December 31, 2022, the return on total capital decreased significantly to -55.84%, reaching its lowest point in the period under review. This sharp decline indicates a worsening in the company's ability to generate returns on the total capital invested.

However, there was a notable turnaround by December 31, 2023, with the return on total capital improving to a negative 17.00%. This uptick suggests that ACADIA Pharmaceuticals Inc may have implemented strategies to enhance the utilization of its capital and improve overall efficiency.

The most recent data point as of December 31, 2024, shows a positive return on total capital of 11.50%, signaling a significant improvement in the company's performance in generating returns relative to its total capital. This turnaround is a positive sign for investors and indicates potential growth and stronger profitability for ACADIA Pharmaceuticals Inc moving forward.

Overall, the return on total capital for ACADIA Pharmaceuticals Inc has displayed volatility but ended on a positive note in the most recent year, highlighting the company's efforts to enhance capital efficiency and potentially improve financial performance.