Catalent Inc (CTLT)
Return on total capital
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -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 | 288,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 1,649,300 |
| Return on total capital | -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% | 17.46% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-749,000K ÷ ($—K + $3,604,000K)
= -20.78%
Catalent Inc's return on total capital has shown a fluctuating trend over the past several quarters. The return on total capital was negative in the most recent quarter at -20.78%, indicating that the company generated a return that was insufficient to cover the total capital employed. This negative trend has been persistent over the last few quarters, with returns ranging from -3.54% to -32.52%.
While there was a brief period of improvement in return on total capital in the earlier quarters of 2021, reaching as high as 22.01%, the company has since experienced a decline in performance. The return on total capital has progressively decreased, raising concerns about the company's ability to efficiently utilize its capital to generate profits.
It is crucial for Catalent Inc to focus on strategies to improve its return on total capital to ensure sustainable growth and value creation for its stakeholders. This may involve optimizing capital allocation, improving operational efficiency, and enhancing profitability across its business segments.
Peer comparison
Jun 30, 2024