Amphastar P (AMPH)

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	196,536	187,971	134,021	121,206	116,709	102,100	115,862	106,016	83,631	49,374	18,992	5,312	5,317	11,900	7,451	69,667	62,781	64,072	65,613	-471
Long-term debt	US$ in thousands	603,174	653,268	—	—	76,642	—	—	—	78,185	—	—	—	45,923	—	—	—	46,324	—	—	—
Total stockholders’ equity	US$ in thousands	639,421	595,140	589,235	548,577	528,658	505,165	499,307	479,525	445,522	430,176	421,993	405,558	402,306	450,962	397,681	377,514	381,366	389,405	387,845	334,986
Return on total capital		15.82%	15.06%	22.74%	22.09%	19.28%	20.21%	23.20%	22.11%	15.97%	11.48%	4.50%	1.31%	1.19%	2.64%	1.87%	18.45%	14.68%	16.45%	16.92%	-0.14%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $196,536K ÷ ($603,174K + $639,421K)
= 15.82%

Amphastar Pharmaceuticals Inc's return on total capital has been fluctuating over the past eight quarters. The company's return on total capital ranged from 11.93% to 18.93% during this period.

Overall, the return on total capital has shown a generally positive trend with some variations. The lowest return on total capital was recorded in Q2 2023 at 11.93%, while the highest return was achieved in Q1 2023 at 18.93%.

On average, the return on total capital over the past eight quarters was approximately 15.63%. This indicates that the company has been able to generate a reasonable return on the total capital employed in its operations.

It is essential for Amphastar Pharmaceuticals Inc to continue monitoring and improving its return on total capital to ensure efficient utilization of its capital resources and maintain profitability. Additionally, further analysis of the factors influencing these fluctuations in return on total capital can provide valuable insights for strategic decision-making and operational improvements.