Biomarin Pharmaceutical Inc (BMRN)

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	484,214	205,898	165,546	-60,013	-19,688
Long-term debt	US$ in thousands	595,138	593,095	1,083,020	1,079,080	1,075,140
Total stockholders’ equity	US$ in thousands	5,657,990	4,951,550	4,603,160	4,265,670	4,100,930
Return on total capital		7.74%	3.71%	2.91%	-1.12%	-0.38%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $484,214K ÷ ($595,138K + $5,657,990K)
= 7.74%

Based on the provided data, Biomarin Pharmaceutical Inc's return on total capital has shown a fluctuating trend over the years.

At December 31, 2020, the return on capital was -0.38%, indicating that the company's capital investments did not generate a positive return during that period. This negative return suggests that the company may have struggled to efficiently utilize its capital to generate profits.

By December 31, 2021, the return on total capital worsened to -1.12%, implying a further decline in the company's capital efficiency. This persistent negative return may raise concerns about the company's ability to generate profits from its capital investments.

However, there was a notable improvement in the return on total capital by December 31, 2022, reaching 2.91%. This positive return indicates that the company started to generate profits from its capital investments, showing some signs of improving efficiency in capital utilization.

The trend continued to strengthen by December 31, 2023, with the return on total capital increasing to 3.71%. This indicates a further enhancement in the company's ability to generate returns from its capital, reflecting a positive trend in capital efficiency.

By December 31, 2024, Biomarin Pharmaceutical Inc's return on total capital significantly improved to 7.74%, signaling a substantial increase in capital efficiency and profitability. This robust return suggests that the company successfully leveraged its capital investments to generate higher returns and achieve improved financial performance.

Overall, the trend in Biomarin Pharmaceutical Inc's return on total capital demonstrates variability in capital efficiency over the years, with a noticeable improvement in recent periods, culminating in a robust return by December 31, 2024. It is essential for the company to sustain and further enhance this positive trend to achieve continued financial success.