Krystal Biotech Inc (KRYS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 65,695 | 12,897 | -139,975 | -68,078 | -32,167 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 946,380 | 778,641 | 522,231 | 593,576 | 292,084 |
| Return on total capital | 6.94% | 1.66% | -26.80% | -11.47% | -11.01% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $65,695K ÷ ($—K + $946,380K)
= 6.94%
Return on total capital is a crucial financial metric that indicates how efficiently a company is utilizing its total capital to generate profits. The trend of Krystal Biotech Inc's return on total capital over the years shows fluctuations.
In December 2020 and 2021, the company reported negative returns on total capital of -11.01% and -11.47% respectively, indicating that the company was not effectively utilizing its total capital to generate profits during those periods.
The return on total capital worsened significantly in December 2022, plummeting to -26.80%, suggesting a substantial decline in profitability relative to the total capital employed. However, the company's performance improved in December 2023, with a positive return on total capital of 1.66%, indicating a better utilization of total capital leading to some profit generation.
Krystal Biotech Inc demonstrated further improvement in December 2024, achieving a return on total capital of 6.94%. This signifies that the company was more efficient in utilizing its total capital to generate profits, indicating a positive trend in profitability.
Overall, it is important for the company to continue monitoring and improving its return on total capital to ensure efficient use of capital resources and sustained profitability.
Peer comparison
Dec 31, 2024