Halozyme Therapeutics Inc (HALO)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	565,202	488,843	425,437	405,852	367,091	336,057	311,013	246,478	265,367	246,871	241,510	301,663	276,728	298,148	263,545	201,132	149,653	40,639	-23,544	-66,427
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	363,821	452,703	289,424	177,808	83,808	249,181	151,033	65,850	169,798	96,991	293,171	260,256	196,953	281,674	119,748	67,595	151,047	98,988	105,577	58,042
Return on total capital		155.35%	107.98%	146.99%	228.25%	438.01%	134.86%	205.92%	374.30%	156.28%	254.53%	82.38%	115.91%	140.50%	105.85%	220.08%	297.55%	99.08%	41.05%	-22.30%	-114.45%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $565,202K ÷ ($—K + $363,821K)
= 155.35%

Halozyme Therapeutics Inc's return on total capital has shown significant fluctuations over the analyzed period. The ratio was negative in the initial quarters of March 31, 2020, and June 30, 2020, indicating that the company was not effectively generating returns on its total capital during that time.

However, from September 30, 2020, onwards, there was a notable improvement in the return on total capital, with the ratio turning positive and steadily increasing. The company experienced a sharp increase in return on total capital from March 31, 2021, reaching a peak of 438.01% by December 31, 2023.

This substantial growth in return on total capital reflects Halozyme Therapeutics Inc's improved ability to generate profits relative to the total capital employed. Investors typically view higher returns on total capital positively, as it suggests efficient utilization of resources and potential for shareholder value creation.

Overall, the trend in Halozyme Therapeutics Inc's return on total capital indicates an upward trajectory and an enhanced performance in generating returns from its total capital base over the analyzed period.