Catalyst Pharmaceuticals Inc (CPRX)

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	86,812	75,921	138,211	120,081	101,838	83,779	72,681	59,950	52,385	48,261	45,961	40,405	41,304	40,693	42,834	43,511	31,823	8,973	-13,055	-30,350
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	387,881	348,548	375,294	333,661	300,421	270,041	241,092	220,221	206,831	198,661	188,944	178,651	169,598	156,628	111,201	99,676	87,630	77,983	63,282	51,176
Return on total capital		22.38%	21.78%	36.83%	35.99%	33.90%	31.02%	30.15%	27.22%	25.33%	24.29%	24.33%	22.62%	24.35%	25.98%	38.52%	43.65%	36.32%	11.51%	-20.63%	-59.31%

December 31, 2023 calculation

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

Catalyst Pharmaceuticals Inc's return on total capital has demonstrated significant fluctuations over the past few quarters. The company's return on total capital ranged from a low of -59.31% in the first quarter of 2019 to a high of 43.65% in the first quarter of 2020. The return on total capital has shown an improving trend since then, reaching 22.38% at the end of December 2023.

The upward trend in return on total capital indicates that Catalyst Pharmaceuticals Inc has been more efficient in generating profits relative to the total capital employed in its operations. The company's ability to generate a return on total capital above 20% in recent quarters suggests that it is utilizing its capital effectively to create value for its shareholders.

However, it is important to note the fluctuations in return on total capital, which may be influenced by various factors such as changes in the company's profitability, asset turnover, and capital structure. Investors and stakeholders should continue to monitor Catalyst Pharmaceuticals Inc's financial performance and assess the sustainability of its return on total capital over the long term.