Neurocrine Biosciences Inc (NBIX)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	78,500	53,476	41,399	-20,453
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	408,807	403,589	398,466	393,435
Total stockholders’ equity	US$ in thousands	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	636,900	574,500	483,700	409,300
Return on total capital		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%	7.51%	5.47%	4.69%	-2.55%

December 31, 2023 calculation

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

Neurocrine Biosciences, Inc. has shown a consistent improvement in its return on total capital over the past eight quarters. The return on total capital has increased steadily from 10.14% in Q1 2022 to 16.44% in Q4 2023. This indicates that the company is becoming more efficient in generating profits relative to the total capital employed in its operations.

The upward trend in return on total capital suggests that Neurocrine Biosciences, Inc. has been effectively utilizing its capital resources to generate higher returns for its shareholders. This improvement may be attributed to various factors, such as better operational efficiency, strategic investments, or effective cost management.

Overall, the increasing trend in return on total capital reflects positively on the financial performance and management efficiency of Neurocrine Biosciences, Inc. It indicates that the company is on a path of sustainable growth and profitability, which could be appealing to investors and stakeholders.