Fulgent Genetics Inc (FLGT)

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 — -72,695 184,675 104,339 290,158
Long-term debt US$ in thousands — — — — —
Total stockholders’ equity US$ in thousands 1,133,230 1,136,100 1,269,880 1,165,880 569,387
Return on total capital 0.00% -6.40% 14.54% 8.95% 50.96%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,133,230K)
= 0.00%

The return on total capital for Fulgent Genetics Inc has exhibited fluctuations over the years based on the provided data.

- In December 31, 2020, the company achieved a robust return on total capital of 50.96%, indicating efficient utilization of both debt and equity in generating profits for its stakeholders.
- By December 31, 2021, the return on total capital declined to 8.95%, suggesting a decrease in the company's ability to generate returns on the total capital employed.
- However, in December 31, 2022, there was a slight improvement with a return on total capital of 14.54%, indicating a better utilization of capital compared to the previous year.
- The trend reversed in December 31, 2023, as the return on total capital turned negative at -6.40%, indicating that the capital employed did not generate sufficient returns to cover the costs.
- Lastly, by December 31, 2024, the return on total capital stood at 0.00%, indicating a breakeven situation where the capital employed generated returns equal to the costs associated with it.

Overall, these fluctuations in the return on total capital highlight the importance of efficiently utilizing both debt and equity to generate optimal returns for Fulgent Genetics Inc and its investors. It would be advisable for the company to closely monitor and manage its capital allocation strategies to improve its profitability and sustainability in the long run.