Collegium Pharmaceutical Inc (COLL)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	159,072	105,865	76,792	48,247	34,366	-12,537	-18,863	-13,566	17,640	66,758	72,235	72,386	56,710	39,721	14,211	-7,360	-22,871	-9,880	-15,185	-17,470
Long-term debt	US$ in thousands	483,838	527,709	571,419	614,991	538,451	581,902	625,268	668,579	201,632	213,570	225,455	237,292	209,594	219,762	229,908	240,094	7,667	8,625	9,583	9,036
Total stockholders’ equity	US$ in thousands	195,431	178,873	200,805	179,733	194,842	197,194	197,612	196,076	202,928	251,094	253,066	170,035	186,031	172,686	155,767	141,063	87,432	84,258	85,823	86,350
Return on total capital		23.42%	14.98%	9.94%	6.07%	4.69%	-1.61%	-2.29%	-1.57%	4.36%	14.37%	15.10%	17.77%	14.33%	10.12%	3.68%	-1.93%	-24.05%	-10.64%	-15.92%	-18.32%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $159,072K ÷ ($483,838K + $195,431K)
= 23.42%

Collegium Pharmaceutical Inc's return on total capital has shown a positive trend over the past eight quarters, with a gradual increase in performance. The company's return on total capital has improved from negative figures in Q2 and Q3 of 2022 to reach 19.36% in Q4 of 2023, indicating a significant enhancement in the company's capital efficiency and profitability. This positive trajectory suggests that Collegium Pharmaceutical Inc has been effectively utilizing its capital resources to generate returns for its investors. The consistent improvement in return on total capital over the quarters reflects positively on the company's financial health and management's ability to generate value from its invested capital.