ACADIA Pharmaceuticals Inc (ACAD)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 52,635 | 80,591 | 22,779 | -4,621 | -73,415 | -154,422 | -127,476 | -164,164 | -223,596 | -222,190 | -206,625 | -216,683 | -170,439 | -192,125 | -262,723 | -263,024 | -285,767 | -275,823 | -235,345 | -248,426 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 732,793 | 577,180 | 516,700 | 464,044 | 431,755 | 362,174 | 395,793 | 374,258 | 400,413 | 425,686 | 434,848 | 444,797 | 540,894 | 566,955 | 564,838 | 581,606 | 627,009 | 654,867 | 663,013 | 638,382 |
| Return on total capital | 7.18% | 13.96% | 4.41% | -1.00% | -17.00% | -42.64% | -32.21% | -43.86% | -55.84% | -52.20% | -47.52% | -48.72% | -31.51% | -33.89% | -46.51% | -45.22% | -45.58% | -42.12% | -35.50% | -38.91% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $52,635K ÷ ($—K + $732,793K)
= 7.18%
ACADIA Pharmaceuticals Inc's return on total capital exhibited significant volatility over the past few years, starting from negative values and showing improvement in recent periods. The return on total capital decreased from around -39% in March 2020 to approximately -55.84% in December 2022. Despite experiencing fluctuations, there was a positive turn in performance in the latter half of 2023 and into 2024. Notably, the return on total capital improved steadily from -42.64% in September 2023 to 7.18% in December 2024.
It is essential to note that a negative return on total capital indicates that the company is not generating sufficient returns to cover its capital costs. The positive trend observed in recent periods suggests improvements in the company's operational efficiency or profitability relative to the capital invested. This change in performance could be attributed to various factors like strategic initiatives, cost management, revenue growth, or capital structure optimization.
Overall, analyzing the return on total capital provides valuable insights into ACADIA Pharmaceuticals Inc's ability to generate returns relative to the total capital employed and can be indicative of the company's efficiency and profitability trends. Continued monitoring of this ratio will be crucial in assessing the company's financial health and performance going forward.
Peer comparison
Dec 31, 2024