Fulgent Genetics Inc (FLGT)
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 | -178,435 | -60,371 | -65,352 | -36,872 | 185,897 | 370,470 | 528,329 | 617,472 | 682,276 | 755,658 | 656,725 | 556,017 | 286,870 | 61,563 | 1,908 | -519 | -428 | -1,048 | -3,403 | -4,699 |
| Long-term debt | US$ in thousands | 2,964 | — | — | — | 3,372 | — | — | — | — | 5,947 | 5,899 | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,136,100 | 1,258,700 | 1,259,760 | 1,264,450 | 1,266,680 | 1,277,050 | 1,304,760 | 1,306,130 | 1,158,750 | 1,036,780 | 912,729 | 801,566 | 569,387 | 186,955 | 87,043 | 81,372 | 82,777 | 54,526 | 51,142 | 49,961 |
| Return on total capital | -15.67% | -4.80% | -5.19% | -2.92% | 14.64% | 29.01% | 40.49% | 47.27% | 58.88% | 72.47% | 71.49% | 69.37% | 50.38% | 32.93% | 2.19% | -0.64% | -0.52% | -1.92% | -6.65% | -9.41% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-178,435K ÷ ($2,964K + $1,136,100K)
= -15.67%
Fulgent Genetics Inc has experienced fluctuations in its return on total capital over the past eight quarters. The return on total capital has declined consistently from a high of 46.03% in Q1 2022 to a low of -6.62% in Q4 2023. This downward trend signifies a decreasing ability of the company to generate profits from its total capital employed.
The negative returns in the most recent quarters indicate that the company is not effectively utilizing its total capital to generate profits. It's important for Fulgent Genetics Inc to closely examine its operational efficiency, capital structure, and profitability in order to improve its return on total capital and enhance shareholder value in the long term.
Investors and stakeholders should closely monitor the company's actions and performance to assess whether management is implementing effective strategies to reverse the decreasing trend in return on total capital.
Peer comparison
Dec 31, 2023