Krystal Biotech Inc (KRYS)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	65,694	27,453	-20,973	-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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	946,380	885,846	838,893	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
Return on total capital		6.94%	3.10%	-2.50%	-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%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $65,694K ÷ ($—K + $946,380K)
= 6.94%

The return on total capital for Krystal Biotech Inc has shown a declining trend over the last few years, starting from a negative figure of -11.76% as of March 31, 2020, to reaching its lowest point at -29.37% as of March 31, 2023. However, there has been a noticeable improvement since then, with the return on total capital gradually increasing to 6.94% as of December 31, 2024.

This improvement suggests that the company may have implemented strategies to enhance profitability and operational efficiency, ultimately leading to a positive return on total capital by the end of 2024. It is essential for Krystal Biotech Inc to sustain this positive trend to demonstrate its ability to generate returns as a proportion of the total capital employed in its operations.