Lantheus Holdings Inc (LNTH)
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 | 450,646 | 430,962 | 33,904 | -67,286 | -2,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,088,010 | 815,892 | 447,147 | 464,439 | 514,205 |
| Return on total capital | 41.42% | 52.82% | 7.58% | -14.49% | -0.39% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $450,646K ÷ ($—K + $1,088,010K)
= 41.42%
Lantheus Holdings Inc's return on total capital has shown varying performance over the years based on the provided data.
At December 31, 2020, the return on total capital was -0.39%, indicating a slight negative return on the invested capital. This may raise concerns about the company's ability to generate profits efficiently using its capital.
By December 31, 2021, the return on total capital deteriorated significantly to -14.49%, suggesting a substantial decline in the company's ability to generate returns relative to the total capital employed. This could signal operational challenges or inefficiencies.
However, there was a notable turnaround by December 31, 2022, with the return on total capital improving to 7.58%. This positive shift indicates that the company may have made operational improvements or strategic decisions that boosted its profitability relative to the total capital invested.
The growth trend continued in the following years, with the return on total capital reaching 52.82% by December 31, 2023, and further increasing to 41.42% by December 31, 2024. These significant improvements suggest that Lantheus Holdings Inc achieved substantial profitability and efficiency in utilizing its total capital during these periods.
Overall, the analysis indicates that Lantheus Holdings Inc experienced fluctuations in its return on total capital but managed to enhance its performance considerably in the later years, demonstrating improved operational effectiveness and profitability.
Peer comparison
Dec 31, 2024