Neurocrine Biosciences Inc (NBIX)
Return on total capital
| Dec 31, 2024 | 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 506,800 | 564,100 | 497,000 | 474,500 | 336,700 | 256,400 | 238,800 | 94,800 | 221,000 | 94,800 | 32,800 | 117,600 | 127,200 | 183,900 | 98,200 | 126,000 | 139,500 | 136,800 | 251,800 | 220,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | 169,500 | 0 | 0 | 169,000 | 377,700 | 335,100 | 330,700 | 326,300 | 322,000 | 317,900 | 425,000 | 419,500 | 414,100 |
| Total stockholders’ equity | US$ in thousands | 2,589,700 | 2,718,900 | 2,509,200 | 2,386,100 | 2,232,000 | 2,002,100 | 1,853,000 | 1,684,500 | 1,707,800 | 1,544,600 | 1,423,400 | 1,391,100 | 1,374,000 | 1,346,000 | 1,279,200 | 1,205,600 | 1,126,200 | 804,300 | 831,200 | 700,300 |
| Return on total capital | 19.57% | 20.75% | 19.81% | 19.89% | 15.09% | 12.81% | 12.89% | 5.11% | 12.94% | 6.14% | 2.06% | 6.65% | 7.44% | 10.97% | 6.12% | 8.25% | 9.66% | 11.13% | 20.13% | 19.77% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $506,800K ÷ ($—K + $2,589,700K)
= 19.57%
Neurocrine Biosciences Inc's return on total capital has varied over the analyzed period. The ratio stood at 19.77% as of March 31, 2020, showing a strong return on the capital employed. Subsequently, the ratio increased to 20.13% by June 30, 2020, indicating continued profitability and efficiency in capital utilization.
However, in the following quarters, there was a notable decline in the return on total capital. By December 31, 2020, the ratio dropped to 9.66%, reflecting potential challenges in generating returns relative to the total capital invested. This downward trend continued into the first half of 2021, reaching a low of 6.12% by June 30, 2021.
The company's return on total capital saw some improvement in the third quarter of 2021, reaching 10.97%. This improvement was not sustained, as evidenced by a decrease to 7.44% by the end of December 31, 2021.
Throughout 2022, the return on total capital remained relatively low, with percentages ranging from 2.06% to 12.94%. The ratio experienced fluctuations, suggesting potential inefficiencies in capital management or changes in the business environment impacting profitability.
In 2023, the return on total capital exhibited more stability compared to the previous year, ranging from 5.11% to 15.09%. The ratio showed signs of improvement in the last quarter of 2023, reaching 15.09%.
As of December 31, 2024, Neurocrine Biosciences Inc's return on total capital stood at 19.57%, indicating a return to higher levels of profitability and efficiency in capital deployment seen in the earlier periods. The overall trend suggests variations in the company's ability to generate returns relative to the total capital invested, with periods of both strength and challenges in capital utilization.
Peer comparison
Dec 31, 2024