Innoviva Inc (INVA)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	213,255	296,397	122,732	321,123	246,360
Long-term debt	US$ in thousands	446,234	444,180	394,653	385,517	377,120
Total stockholders’ equity	US$ in thousands	674,955	565,788	414,743	539,912	313,495
Return on total capital		19.02%	29.35%	15.16%	34.70%	35.67%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $213,255K ÷ ($446,234K + $674,955K)
= 19.02%

Innoviva Inc's return on total capital has exhibited fluctuations over the past five years. In 2023, the return on total capital decreased to 19.00% from 19.22% in 2022. This slight decline may signify a potential decrease in the company's efficiency in utilizing its total capital to generate profits. However, it is notable that in 2023, Innoviva Inc's return on total capital remains relatively strong compared to previous years, such as 2021 when it was 46.34%. This suggests that the company was able to generate significant returns on its total capital in 2023.

It is essential to further investigate the factors influencing the return on total capital to ascertain the reasons behind the fluctuations observed over the years. Additionally, comparing the return on total capital with industry benchmarks and peer companies could provide valuable insights into Innoviva Inc's performance in utilizing its total capital effectively.