Catalent Inc (CTLT)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -90,000 | -749,000 | -981,000 | -1,199,000 | -949,000 | -163,000 | 183,000 | 629,000 | 652,000 | 730,000 | 761,000 | 919,000 | 885,000 | 829,000 | 747,800 | 479,600 | 441,600 | 394,000 | 333,800 | 298,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,542,000 | 3,604,000 | 3,611,000 | 3,687,000 | 3,841,000 | 4,611,000 | 4,703,000 | 4,892,000 | 4,680,000 | 4,775,000 | 4,632,000 | 4,481,000 | 4,021,000 | 3,915,000 | 3,713,200 | 3,455,500 | 3,072,100 | 2,899,000 | 2,187,700 | 1,716,100 |
| Return on total capital | -2.54% | -20.78% | -27.17% | -32.52% | -24.71% | -3.54% | 3.89% | 12.86% | 13.93% | 15.29% | 16.43% | 20.51% | 22.01% | 21.17% | 20.14% | 13.88% | 14.37% | 13.59% | 15.26% | 17.41% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-90,000K ÷ ($—K + $3,542,000K)
= -2.54%
Catalent Inc's return on total capital has exhibited significant fluctuations over the past years. The return on total capital was negative in recent quarters, indicating that the company's capital investments have not been generating adequate returns.
The return on total capital hit a low of -32.52% in December 2023, reflecting a substantial underperformance in generating profits relative to the total capital employed. This downward trend continued into early 2024, with returns remaining negative.
However, there were periods of recovery in the return on total capital, notably in December 2021 and March 2022 when the return exceeded 20%. This suggests that the company managed to generate higher profits relative to the capital invested during these periods.
Overall, the fluctuating pattern of Catalent Inc's return on total capital signals a degree of volatility and inconsistency in the company's ability to utilize its capital efficiently to generate profits. Further analysis of the factors influencing these fluctuations would be necessary to assess the company's capital allocation and operational effectiveness.
Peer comparison
Sep 30, 2024