Catalyst Pharmaceuticals Inc (CPRX)
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 | — | 86,812 | 101,838 | 52,385 | 41,303 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 727,632 | 387,881 | 300,421 | 206,831 | 169,598 |
| Return on total capital | 0.00% | 22.38% | 33.90% | 25.33% | 24.35% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $727,632K)
= 0.00%
Catalyst Pharmaceuticals Inc's return on total capital has shown fluctuations over the years. The company's return on total capital increased from 24.35% as of December 31, 2020, to 25.33% by December 31, 2021, indicating a slight improvement in capital efficiency. Subsequently, there was a significant rise in return on total capital to 33.90% by December 31, 2022, suggesting improved profitability in relation to the total capital employed.
However, there was a decline in return on total capital to 22.38% by December 31, 2023. This reduction implies a decrease in the company's ability to generate earnings in relation to its total capital base. Notably, the return on total capital dropped to 0.00% by December 31, 2024, which could raise concerns regarding the company's capital utilization efficiency and overall profitability.
Overall, while Catalyst Pharmaceuticals Inc demonstrated an overall positive trend in return on total capital between 2020 and 2022, the subsequent decline in 2023 and a drastic drop to 0.00% in 2024 may indicate challenges in effectively deploying capital to generate returns. Further analysis of the company's financial performance and operational strategies would be necessary to understand the factors influencing these fluctuations in return on total capital.
Peer comparison
Dec 31, 2024