Dynavax Technologies Corporation (DVAX)
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 | 37,649 | 2,390 | 301,031 | 88,697 | -56,178 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 596,799 | 622,072 | 581,013 | 222,374 | 58,693 |
| Return on total capital | 6.31% | 0.38% | 51.81% | 39.89% | -95.71% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $37,649K ÷ ($—K + $596,799K)
= 6.31%
Return on total capital is a key financial metric that measures a company's efficiency in generating returns from both debt and equity capital employed in its operations.
Looking at the data provided for Dynavax Technologies Corporation, we can see a significant improvement in the company's return on total capital over the years.
- In 2020, the return on total capital was negative at -95.71%, indicating that the company was not effectively utilizing its capital to generate profits.
- However, by the end of 2021, there was a notable turnaround with a return on total capital of 39.89%, signaling a positive shift in the company's performance.
- This positive trend continued into 2022, where Dynavax Technologies Corporation achieved a return on total capital of 51.81%, further increasing profitability.
- The performance in 2023 saw a slight decline in the return on total capital to 0.38%, suggesting potential challenges in efficiently deploying capital.
- By the end of 2024, the return on total capital improved to 6.31%, indicating a modest recovery and pointing towards efforts to optimize capital utilization.
Overall, the improvement in Dynavax Technologies Corporation's return on total capital from negative to positive figures demonstrates the company's ability to enhance its operational efficiency and generate better returns for its capital providers. This trend reflects positive developments in the company's financial management and performance over the specified period.
Peer comparison
Dec 31, 2024