Exelixis Inc (EXEL)

Return on total capital

		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	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	170,885	41,019	141,215	147,071	201,484	366,206	335,214	374,516	286,666	194,319	100,118	52,644	110,060	163,079	321,265	337,720	369,470	408,525	421,874	418,280
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,263,910	2,347,620	2,527,940	2,555,140	2,488,430	2,491,400	2,391,260	2,293,850	2,210,620	2,112,450	2,043,080	1,911,190	1,879,110	1,852,030	1,833,320	1,747,650	1,685,970	1,603,720	1,488,630	1,385,020
Return on total capital		7.55%	1.75%	5.59%	5.76%	8.10%	14.70%	14.02%	16.33%	12.97%	9.20%	4.90%	2.75%	5.86%	8.81%	17.52%	19.32%	21.91%	25.47%	28.34%	30.20%

December 31, 2023 calculation

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

Exelixis Inc's return on total capital has displayed some fluctuations over the past several quarters. The trend shows a general decrease in return on total capital from the end of 2019 towards the end of 2022. During this period, the return on total capital ranged from 30.20% in March 2019 to 5.86% in March 2021.

However, there was a significant jump in return on total capital in the second half of 2022, with numbers reaching as high as 16.33% in March 2022 and peaking at 19.32% in September 2022. This may indicate improved efficiency in capital utilization or increased profitability during that period.

In the more recent quarters of 2023, the return on total capital has ranged from 1.75% in September to 7.55% in December. While there has been a recovery from the lower figures seen in mid-2023, the return on total capital remains below the levels observed in late 2022.

Overall, Exelixis Inc's return on total capital has shown variability over the periods analyzed, suggesting fluctuations in the company's ability to generate profits from its total invested capital. It would be important to further investigate the factors driving these changes to assess the company's financial performance and sustainability in the long term.