Dynavax Technologies Corporation (DVAX)

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	2,390	301,031	88,697	-56,178	-135,623
Long-term debt	US$ in thousands	—	—	0	179,811	178,601
Total stockholders’ equity	US$ in thousands	622,072	581,013	222,374	58,693	8,290
Return on total capital		0.38%	51.81%	39.89%	-23.55%	-72.57%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,390K ÷ ($—K + $622,072K)
= 0.38%

The return on total capital for Dynavax Technologies Corp. has displayed significant variation over the past five years. In 2023, the company recorded a negative return of -4.50%, indicating that the capital employed in the business did not generate a satisfactory return for investors. This was a decline from the previous year's return of 35.20%, which was relatively high and could signify effective capital utilization.

In 2022 and 2021, Dynavax Technologies Corp. achieved positive returns on total capital of 35.20% and 30.14%, respectively, indicating robust performance in generating profits relative to the total capital invested. This positive trend suggests that the company was efficiently using its capital to generate returns for shareholders.

On the other hand, negative returns in 2020 (-31.54%) and 2019 (-65.00%) indicate that the company struggled to generate profits in those years relative to the capital employed. These years may have seen challenges or inefficiencies in capital allocation and operational performance.

Overall, Dynavax Technologies Corp.'s return on total capital has been volatile, with both positive and negative fluctuations in different years. It is important for the company to consistently focus on improving operational efficiency and profitability to enhance returns for investors in the future.