Harmony Biosciences Holdings (HRMY)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 197,153 | 120,186 | 87,528 | 16,986 |
| Long-term debt | US$ in thousands | 178,566 | 189,647 | 189,984 | 194,250 |
| Total stockholders’ equity | US$ in thousands | 466,992 | 402,838 | 186,507 | 97,180 |
| Return on total capital | 30.54% | 20.29% | 23.25% | 5.83% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $197,153K ÷ ($178,566K + $466,992K)
= 30.54%
Harmony Biosciences Holdings Inc's return on total capital has shown a positive trend over the past four years. The return on total capital increased significantly from 5.83% in 2020 to 29.07% in 2023, indicating a notable improvement in the company's ability to generate profits relative to the total capital employed. This upward trajectory suggests that Harmony Biosciences Holdings Inc has been effectively utilizing its total capital to generate returns for its investors. The consistent increase in the return on total capital demonstrates management's efficient allocation of resources and potential for sustainable growth.
Peer comparison
Dec 31, 2023