Exelixis Inc (EXEL)
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 | 604,617 | 170,885 | 201,484 | 286,666 | 110,060 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,244,200 | 2,263,910 | 2,488,430 | 2,210,620 | 1,879,110 |
| Return on total capital | 26.94% | 7.55% | 8.10% | 12.97% | 5.86% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $604,617K ÷ ($—K + $2,244,200K)
= 26.94%
Exelixis Inc's return on total capital has exhibited fluctuations over the years, indicating varying levels of efficiency in utilizing its total capital to generate profits. The ratio increased from 5.86% as of December 31, 2020, to 26.94% as of December 31, 2024, showcasing a notable improvement in capital efficiency. However, there were fluctuations in the intervening years, with the ratio peaking in 2024.
The significant increase in the return on total capital in 2024 suggests that Exelixis Inc may have implemented strategies to enhance its profitability relative to the total capital employed. This improvement could be attributed to various factors such as cost management, revenue growth, or operational efficiency initiatives.
Overall, the trend in Exelixis Inc's return on total capital indicates a mixed performance, with notable improvements in certain years. Further analysis of the company's financial performance and operational strategies may provide insights into the drivers behind these fluctuations in the return on total capital.
Peer comparison
Dec 31, 2024