Amphastar P (AMPH)

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 205,419 196,536 116,709 83,631 5,317
Long-term debt US$ in thousands 613,532 603,174 76,642 78,185 45,923
Total stockholders’ equity US$ in thousands 732,298 639,421 528,658 445,522 402,306
Return on total capital 15.26% 15.82% 19.28% 15.97% 1.19%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $205,419K ÷ ($613,532K + $732,298K)
= 15.26%

Amphastar P's return on total capital has shown a notable improvement over the past years. It stood at 1.19% on December 31, 2020, and increased significantly to 15.97% by December 31, 2021. The trend continued upwards, reaching 19.28% by December 31, 2022. Although there was a slight decrease to 15.82% by December 31, 2023, the return on total capital remained relatively strong at 15.26% by December 31, 2024. This consistent growth in return on total capital indicates that Amphastar P is effectively utilizing its total capital to generate profits and create value for its stakeholders. It reflects the company's ability to generate returns from the total pool of invested capital, showcasing efficiency and profitability in its operations.