Catalyst Pharmaceuticals Inc (CPRX)

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	86,812	101,838	52,385	41,303	31,823
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	387,881	300,421	206,831	169,598	87,630
Return on total capital		22.38%	33.90%	25.33%	24.35%	36.32%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $86,812K ÷ ($—K + $387,881K)
= 22.38%

Catalyst Pharmaceuticals Inc's return on total capital has exhibited fluctuations over the past five years. The return on total capital was 22.38% in 2023, representing a decline from the previous year's 33.90%. However, the return remained relatively high compared to 2021 and 2020, which were 25.33% and 24.35%, respectively. Notably, the highest return on total capital was recorded in 2019 at 36.32%. This indicates that the company has been able to generate a strong return on the total capital employed in its operations, although there was a recent decrease in 2023 compared to the prior year. Further analysis of the factors contributing to this trend would be necessary to assess the company's overall performance and efficiency in utilizing capital resources.