Myriad Genetics Inc (MYGN)

Return on total capital

		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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-113,300	-153,500	-232,600	-259,300	-279,100	-262,300	-164,000	-137,400	-129,200	-44,900	-29,400	-50,500	-48,300	-144,500	-271,500	-233,800	-212,400	-161,500	-26,200	-10,300
Long-term debt	US$ in thousands	39,000	38,800	38,700	38,500	38,500	38,400	—	0	—	—	—	0	0	0	—	—	224,400	225,200	225,100	225,000
Total stockholders’ equity	US$ in thousands	731,700	740,500	760,000	783,200	683,400	735,200	835,200	885,800	916,600	947,400	950,100	967,800	968,600	902,500	875,200	909,300	918,200	967,200	1,077,200	1,074,500
Return on total capital		-14.70%	-19.70%	-29.12%	-31.56%	-38.66%	-33.91%	-19.64%	-15.51%	-14.10%	-4.74%	-3.09%	-5.22%	-4.99%	-16.01%	-31.02%	-25.71%	-18.59%	-13.54%	-2.01%	-0.79%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-113,300K ÷ ($39,000K + $731,700K)
= -14.70%

Myriad Genetics Inc's return on total capital has shown a downward trend over the past few quarters, ranging from negative 29.12% to negative 3.09%. This indicates that the company is not efficiently generating returns from the total capital invested in its operations. The most recent figure of -14.70% suggests that the company's profitability in relation to its total capital has deteriorated compared to the preceding periods.

The consistently negative return on total capital may raise concerns about the company's operational efficiency and its ability to utilize its capital effectively to generate profits. Investors and stakeholders may view this trend as a red flag, prompting them to further investigate the factors contributing to the declining returns and the company's overall financial health. Management may need to focus on improving operational performance, cost management, and strategic decision-making to reverse the negative trend in return on total capital.