Glaukos Corp (GKOS)
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 | -122,366 | -120,094 | -84,714 | -35,895 | -118,199 |
| Long-term debt | US$ in thousands | — | 282,773 | 281,400 | 280,026 | 189,416 |
| Total stockholders’ equity | US$ in thousands | 766,931 | 461,766 | 530,005 | 587,151 | 667,449 |
| Return on total capital | -15.96% | -16.13% | -10.44% | -4.14% | -13.79% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-122,366K ÷ ($—K + $766,931K)
= -15.96%
Analyzing the return on total capital for Glaukos Corp over the period from December 31, 2020, to December 31, 2024, reveals a downward trend.
Starting at -13.79% in 2020, the return on total capital improved slightly to -4.14% by the end of 2021. However, this improvement was short-lived as the ratio deteriorated to -10.44% in 2022 and further declined to -16.13% by the end of 2023. The negative trend continued in 2024, with a return on total capital of -15.96%.
The consistently negative return on total capital indicates that Glaukos Corp has been unable to generate sufficient returns from the total capital employed in its operations. This may suggest inefficiencies in the company's capital allocation or operational performance, which could impact its overall financial health and long-term sustainability. Management should closely evaluate the factors contributing to this trend and consider implementing strategic changes to improve the return on total capital in the future.
Peer comparison
Dec 31, 2024