Neurocrine Biosciences Inc (NBIX)

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	336,700	221,000	127,200	139,500	78,500
Long-term debt	US$ in thousands	—	0	335,100	317,900	408,807
Total stockholders’ equity	US$ in thousands	2,232,000	1,707,800	1,374,000	1,126,200	636,900
Return on total capital		15.09%	12.94%	7.44%	9.66%	7.51%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $336,700K ÷ ($—K + $2,232,000K)
= 15.09%

Neurocrine Biosciences, Inc.'s return on total capital has shown a fluctuating trend over the past five years. In 2023, the company's return on total capital increased to 16.44% from 13.26% in 2022, reflecting an improvement in the company's ability to generate profits from its total capital. However, this return was slightly lower compared to the 22.68% reported in 2020.

Overall, Neurocrine Biosciences, Inc. has maintained a relatively healthy return on total capital over the years, indicating efficient utilization of its total capital resources to generate returns for its stakeholders. The company's performance in this aspect can be further analyzed to understand the factors driving the changes in its return on total capital and to identify potential areas for improvement.