Halozyme Therapeutics Inc (HALO)
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 | 575,227 | 367,091 | 265,865 | 275,902 | 144,255 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 363,821 | 83,808 | 169,798 | 196,953 | 151,047 |
| Return on total capital | 158.11% | 438.01% | 156.58% | 140.09% | 95.50% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $575,227K ÷ ($—K + $363,821K)
= 158.11%
Halozyme Therapeutics Inc's return on total capital has shown a positive trend over the years, reflecting the company's efficiency in generating profits from its invested capital. The ratio was 95.50% as of December 31, 2020, indicating that the company generated $0.955 in profit for every $1 of total capital invested.
Subsequently, the return on total capital increased significantly to 140.09% as of December 31, 2021, and continued to rise to 156.58% as of December 31, 2022. This upward trajectory suggests that the company has been able to enhance its profitability relative to the total capital employed, demonstrating effective capital utilization.
The return on total capital reached a peak of 438.01% as of December 31, 2023, indicating a notable surge in profitability in that period. However, the ratio slightly decreased to 158.11% as of December 31, 2024. Despite the slight decline in the most recent year, the company's overall performance in generating returns from the total capital has been impressive.
In summary, Halozyme Therapeutics Inc's return on total capital has exhibited a positive growth trend, reflecting the company's ability to efficiently utilize its total capital to generate profits. This implies effective management of resources and a potentially promising outlook for the company's financial performance.
Peer comparison
Dec 31, 2024