Collegium Pharmaceutical Inc (COLL)
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 | 159,072 | 34,366 | 17,640 | 56,464 | -21,813 |
| Long-term debt | US$ in thousands | 483,838 | 538,451 | 201,632 | 209,594 | 7,667 |
| Total stockholders’ equity | US$ in thousands | 195,431 | 194,842 | 202,928 | 186,031 | 87,432 |
| Return on total capital | 23.42% | 4.69% | 4.36% | 14.27% | -22.94% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $159,072K ÷ ($483,838K + $195,431K)
= 23.42%
Collegium Pharmaceutical Inc's return on total capital has shown fluctuating performance over the past five years. In 2023, the return on total capital was 19.36%, indicating a significant improvement compared to the previous year's 3.72%. This suggests that the company generated a higher return relative to its total capital investment in 2023.
Looking further back, the return on total capital was 4.90% in 2021 and 12.69% in 2020, indicating positive performance during those years. However, in 2019, the company reported a negative return on total capital of -24.00%, reflecting a substantial loss relative to its capital investment.
Overall, Collegium Pharmaceutical Inc's return on total capital has shown variability, with the most recent year showing a notable improvement in performance. It is essential for the company to sustain and potentially enhance this positive trend to ensure efficient utilization of its total capital and drive long-term profitability.
Peer comparison
Dec 31, 2023