Moderna Inc (MRNA)
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 | -4,239,000 | 9,420,000 | 13,296,000 | -763,000 | -546,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 13,854,000 | 19,123,000 | 14,145,000 | 2,561,000 | 1,175,000 |
| Return on total capital | -30.60% | 49.26% | 94.00% | -29.79% | -46.47% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-4,239,000K ÷ ($—K + $13,854,000K)
= -30.60%
Based on the data provided, Moderna Inc's return on total capital has exhibited significant fluctuations over the past five years. In 2023, the return on total capital was -29.38%, indicating that the company experienced a negative return on its total capital invested during that period. This poor performance in 2023 contrasts sharply with the substantial positive returns in 2022 (46.64%) and 2021 (89.18%).
The negative returns in 2020 (-28.31%) and 2019 (-44.97%) further emphasize the volatility in Moderna Inc's ability to generate returns on its total capital. It is important to note that a negative return on total capital implies that the company's operating income is insufficient to cover both its cost of debt and cost of equity capital.
Overall, the inconsistent performance of Moderna Inc's return on total capital raises questions about the company's efficiency in utilizing its capital resources effectively to generate profits for its investors. Investors and stakeholders may closely monitor future financial performance and management decisions to assess the company's ability to improve its return on total capital in the long term.
Peer comparison
Dec 31, 2023