ANI Pharmaceuticals Inc (ANIP)

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	-4,610	46,808	-8,904	-48,936	-15,570
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	428,530	457,599	338,540	358,740	195,700
Return on total capital		-1.08%	10.23%	-2.63%	-13.64%	-7.96%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-4,610K ÷ ($—K + $428,530K)
= -1.08%

The return on total capital for ANI Pharmaceuticals Inc has shown varied performance over the years. In December 31, 2020, the return on total capital was -7.96%, indicating that the company was unable to generate a positive return on the total capital invested. This negative trend worsened in December 31, 2021, with a return of -13.64%, signaling further challenges in utilizing capital effectively.

However, there was a notable improvement in the company's performance by December 31, 2022, where the return on total capital improved to -2.63%. This suggests that ANI Pharmaceuticals Inc was making efforts to enhance its operational efficiency and potentially improve its profitability.

The positive turn continued in December 31, 2023, with a return on total capital of 10.23%, indicating a significant rebound in the company's ability to generate returns on the capital invested. This improvement may signify successful strategic initiatives or operational changes implemented by the company during that period.

Nevertheless, there was a slight setback in December 31, 2024, with a return on total capital of -1.08%, which indicates a dip in the company's ability to generate returns on its total capital compared to the previous year. It would be important for ANI Pharmaceuticals Inc to assess the factors contributing to this decline and take corrective actions to maintain a positive trajectory in the future.