Lantheus Holdings Inc (LNTH)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	430,962	33,904	-67,286	-2,000	42,244
Long-term debt	US$ in thousands	—	557,712	163,121	197,699	183,927
Total stockholders’ equity	US$ in thousands	815,892	447,147	464,439	514,205	114,601
Return on total capital		52.82%	3.37%	-10.72%	-0.28%	14.15%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $430,962K ÷ ($—K + $815,892K)
= 52.82%

Lantheus Holdings Inc's return on total capital has exhibited significant fluctuations over the past five years. In 2023, the return on total capital improved substantially to 26.45%, indicating a positive trend in the company's ability to generate earnings relative to the total capital employed. This marked improvement from the previous year's 3.60% demonstrates enhanced efficiency and profitability in capital utilization.

The return on total capital was negative in 2021 at -11.90%, signifying that the company's earnings were not sufficient to cover the total capital investment. However, this negative performance was partially offset by the positive returns seen in 2019 and 2020 at 16.74% and -0.57%, respectively.

Overall, Lantheus Holdings Inc's return on total capital has shown volatility, with a mix of positive and negative returns. The company should continue to focus on optimizing its capital allocation and operational efficiency to sustain and improve its return on total capital in the future.