Innoviva Inc (INVA)

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	213,236	85,378	322,749	395,141	427,303	340,158	106,992	120,978	122,732	355,363	345,240	324,491	321,123	309,975	286,338	270,307	246,360	249,941	246,809	249,724
Long-term debt	US$ in thousands	446,234	445,718	445,201	444,692	444,180	443,679	443,178	442,731	394,653	392,295	389,989	387,728	385,517	383,350	381,230	379,152	377,120	388,644	386,675	384,744
Total stockholders’ equity	US$ in thousands	674,955	627,493	555,087	561,493	565,788	641,368	388,337	386,642	414,743	402,811	329,780	634,461	539,912	485,556	456,907	379,543	313,495	267,055	226,683	188,245
Return on total capital		19.02%	7.96%	32.27%	39.27%	42.31%	31.35%	12.87%	14.59%	15.16%	44.69%	47.97%	31.74%	34.70%	35.67%	34.16%	35.63%	35.67%	38.12%	40.24%	43.58%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $213,236K ÷ ($446,234K + $674,955K)
= 19.02%

Innoviva Inc's return on total capital has exhibited variability over the past eight quarters, indicating fluctuations in the company's efficiency in generating profits from its total capital employed. The return on total capital ranged from a low of 11.38% in Q2 2023 to a high of 40.35% in Q1 2022. The decreasing trend observed from Q1 2022 through Q2 2023 suggests a potential decline in the company's ability to generate returns relative to its total capital base during this period. However, the slight increase in Q4 2023 indicates a potential rebound in performance. Further analysis is required to understand the underlying factors driving these fluctuations and their implications for the company's overall financial health and profitability.