Krystal Biotech Inc (KRYS)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-67,587	-109,726	-147,635	-153,093	-143,798	-145,197	-132,302	-116,503	-104,143	-68,274	-56,818	-50,846	-41,407	-33,000	-28,734	-24,396	-23,332	-22,080	-18,898	-16,005
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	799,242	778,641	755,948	653,114	489,566	522,231	540,772	559,181	548,554	593,576	408,237	418,540	430,652	292,084	301,720	309,696	198,369	202,914	207,646	198,290
Return on total capital		-8.46%	-14.09%	-19.53%	-23.44%	-29.37%	-27.80%	-24.47%	-20.83%	-18.99%	-11.50%	-13.92%	-12.15%	-9.61%	-11.30%	-9.52%	-7.88%	-11.76%	-10.88%	-9.10%	-8.07%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-67,587K ÷ ($—K + $799,242K)
= -8.46%

The return on total capital for Krystal Biotech Inc has shown a declining trend over the past few quarters, standing at -8.46% as of March 31, 2024, which indicates that the company is not efficiently utilizing its capital to generate profits. The negative values suggest that the company's operating performance is not meeting expectations in terms of generating returns for its capital providers.

The consecutive negative values, with a peak at -29.37% in March 31, 2023, highlight a consistent struggle in generating satisfactory returns for the capital invested in the business. This downward trend could raise concerns among investors and stakeholders about the company's financial health and operational efficiency.

It is important for Krystal Biotech Inc to closely analyze the factors contributing to this declining trend in return on total capital and implement strategic measures to improve operational efficiency, productivity, and profitability to enhance overall financial performance and investor confidence.