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.