Glaukos Corp (GKOS)
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 | -120,094 | -84,714 | -35,895 | -118,199 | -47,471 |
| Long-term debt | US$ in thousands | 282,773 | 281,400 | 280,026 | 189,416 | — |
| Total stockholders’ equity | US$ in thousands | 461,766 | 530,005 | 587,151 | 667,449 | 673,272 |
| Return on total capital | -16.13% | -10.44% | -4.14% | -13.79% | -7.05% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-120,094K ÷ ($282,773K + $461,766K)
= -16.13%
The return on total capital for Glaukos Corporation has been fluctuating over the past five years. In 2023, the return on total capital deteriorated significantly to -15.18%, representing a substantial decrease from the previous year's -11.58%. This negative trend indicates that the company's ability to generate returns from its total capital has weakened.
Comparing the most recent figure to 2021 and 2019, where the returns were -5.63% and -6.36% respectively, shows a notable decline in performance. The negative returns suggest that the company may not be efficiently utilizing its total capital to generate profits for its shareholders.
Moreover, the return on total capital in 2020 was also negative at -13.47%, indicating a continued struggle in generating adequate returns relative to the total capital invested. Overall, the trend in Glaukos Corporation's return on total capital reflects a concerning pattern of underperformance in recent years.
Peer comparison
Dec 31, 2023