Halozyme Therapeutics Inc (HALO)

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	367,068	336,034	311,013	246,478	265,865	247,369	242,008	302,161	256,044	277,464	242,864	180,475	149,680	40,666	-23,518	-66,391	-60,624	-27,949	-28,589	-34,685
Long-term debt	US$ in thousands	1,499,250	1,497,620	1,496,000	1,494,380	1,492,770	1,491,160	—	—	787,255	—	—	—	0	—	—	—	383,045	—	—	—
Total stockholders’ equity	US$ in thousands	83,808	249,181	151,033	65,850	169,798	96,991	293,171	260,256	196,953	281,674	119,746	67,595	151,047	98,988	105,577	58,042	91,765	245,353	260,052	260,047
Return on total capital		23.19%	19.24%	18.88%	15.80%	15.99%	15.58%	82.55%	116.10%	26.02%	98.51%	202.82%	266.99%	99.09%	41.08%	-22.28%	-114.38%	-12.77%	-11.39%	-10.99%	-13.34%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $367,068K ÷ ($1,499,250K + $83,808K)
= 23.19%

Halozyme Therapeutics Inc.'s return on total capital has exhibited fluctuating performance over the past eight quarters. In Q4 2023, the return on total capital was relatively high at 21.32%, indicating efficient utilization of both debt and equity in generating profits. This was an improvement compared to the previous quarter of Q3 2023, which showed a lower return of 17.81%.

While the returns in Q2 and Q3 2023 were somewhat consistent around the 18% range, Q1 2023 saw a slight dip to 15.75%. The trend of improving returns from Q1 2023 to Q4 2023 may suggest increasing effectiveness in capital allocation and operational efficiency.

Comparing the performance to the same quarters in the previous year, Q4 2023 shows an increase from Q4 2022's 15.96%. However, Q1 and Q2 2023 had lower returns compared to their counterparts in 2022. Notably, Q1 2022 had a significantly higher return of 26.44%, which was the highest in the given dataset.

Overall, Halozyme Therapeutics Inc. has demonstrated varying levels of return on total capital in recent quarters, showing a mix of strengths and areas for potential improvement in optimizing the utilization of its total capital resources to generate higher returns for its stakeholders. Further analysis and evaluation of the company's capital structure and operational efficiency may provide insights into sustaining and improving its return on total capital in the future.