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.
Peer comparison
Dec 31, 2023