Exelixis Inc (EXEL)

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	170,885	201,484	286,666	110,060	398,109
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,263,910	2,488,430	2,210,620	1,879,110	1,685,970
Return on total capital		7.55%	8.10%	12.97%	5.86%	23.61%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $170,885K ÷ ($—K + $2,263,910K)
= 7.55%

Exelixis Inc's return on total capital has shown varying trends over the past five years. In 2023, the return on total capital decreased to 7.55% from 8.10% in 2022. This decline indicates that the company may be facing challenges in generating adequate returns on the total capital employed in its operations.

Comparing the 2023 figure to the 2019 peak of 23.61%, there has been a significant drop in the return on total capital over the five-year period. This downward trend suggests that the company may be experiencing difficulties in efficiently utilizing its total capital to generate profits.

The return on total capital in 2021 stood at 12.97%, reflecting a strong performance that year. However, this was followed by a decrease to 5.86% in 2020, indicating a potential dip in profitability and capital utilization efficiency.

In summary, Exelixis Inc's return on total capital has been fluctuating over the years, with the latest figure showing a decrease. This trend suggests that the company may need to focus on enhancing its capital efficiency and profitability to improve its overall financial performance.