ANI Pharmaceuticals Inc (ANIP)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	46,971	-35,283	-39,793	-16,016	16,351
Long-term debt	US$ in thousands	284,819	285,669	286,520	172,443	175,808
Total stockholders’ equity	US$ in thousands	432,749	313,690	333,890	195,700	212,791
Return on total capital		6.55%	-5.89%	-6.41%	-4.35%	4.21%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $46,971K ÷ ($284,819K + $432,749K)
= 6.55%

From the data provided, ANI Pharmaceuticals Inc's return on total capital has varied significantly over the past five years. In 2023, the return on total capital improved to 6.89%, indicating that the company generated a return of 6.89% on its total invested capital during that year.

In contrast, in 2022 and 2021, the return on total capital was negative at -4.12% and -4.24% respectively, implying that the company incurred losses on its invested capital during those years. This suggests that the company was unable to generate returns to cover the capital invested during these two years.

The negative trend in return on total capital continued in 2020 with a -1.13% return, although it was less negative compared to the previous two years. However, in 2019, the company had a positive return on total capital of 5.80%, indicating a profitable year where ANI Pharmaceuticals Inc was able to earn a return of 5.80% on its total capital.

Overall, the fluctuating trend in return on total capital for ANI Pharmaceuticals Inc over the past five years highlights the company's varying performance in generating returns relative to its invested capital. Further analysis of the company's financial performance and operational strategies would be necessary to understand the reasons behind these fluctuations and to assess the company's overall financial health and efficiency in utilizing its capital.