Corcept Therapeutics Incorporated (CORT)
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 | — | 107,282 | 112,634 | 124,477 | 128,202 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 679,589 | 506,705 | 501,842 | 375,806 | 523,338 |
| Return on total capital | 0.00% | 21.17% | 22.44% | 33.12% | 24.50% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $679,589K)
= 0.00%
Based on the data provided, Corcept Therapeutics Incorporated's return on total capital has shown variability over the years. In 2020, the return on total capital was 24.50%, indicating that the company generated $0.245 in profits for every dollar of total capital employed. This ratio increased to 33.12% in 2021, suggesting improved efficiency in utilizing capital resources to generate earnings.
However, there was a decline in the return on total capital to 22.44% in 2022 and a further decrease to 21.17% in 2023. These reductions may indicate challenges in maintaining previous levels of profitability relative to the level of total capital investment.
Remarkably, by December 31, 2024, the return on total capital dropped to 0.00%, which raises concerns about the company's ability to generate returns on the capital being employed. This could be due to factors such as operational inefficiencies, declining profitability, or changes in the capital structure.
In conclusion, Corcept Therapeutics Incorporated's return on total capital has demonstrated fluctuations, with a notable decline to 0.00% by the end of 2024. Further analysis of the company's financial performance and capital utilization efficiency would be necessary to understand the underlying reasons for these trends.
Peer comparison
Dec 31, 2024