Myriad Genetics Inc (MYGN)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Jun 30, 2020	Jun 30, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	-259,300	-137,400	-50,500	-212,400	12,200
Long-term debt	US$ in thousands	38,500	0	0	224,400	233,500
Total stockholders’ equity	US$ in thousands	783,200	885,800	967,800	918,200	1,088,900
Return on total capital		-31.56%	-15.51%	-5.22%	-18.59%	0.92%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-259,300K ÷ ($38,500K + $783,200K)
= -31.56%

The return on total capital for Myriad Genetics, Inc. has been negative for the past five periods, indicating that the company has not been generating a satisfactory return relative to its total capital employed. The trend shows a gradual worsening of the return on total capital over the years, with the most recent figure being the lowest at -17.60%.

The consistently negative return on total capital may suggest inefficiencies in the utilization of the company's capital resources or challenges in generating profits from the invested capital. Investors and analysts may view this trend as a red flag, signaling potential financial distress or operational issues within the company. It may also indicate a need for the company to review its capital allocation strategies to improve profitability and efficiency moving forward.