Pacira Pharmaceuticals Inc (PCRX)
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 | 82,007 | 53,278 | 88,154 | 45,760 | 12,880 |
| Long-term debt | US$ in thousands | 513,796 | 655,823 | 674,530 | 313,030 | 306,045 |
| Total stockholders’ equity | US$ in thousands | 870,130 | 775,010 | 730,408 | 619,688 | 354,944 |
| Return on total capital | 5.93% | 3.72% | 6.27% | 4.91% | 1.95% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $82,007K ÷ ($513,796K + $870,130K)
= 5.93%
Pacira BioSciences Inc has shown varying levels of return on total capital over the past five years, as depicted in the table provided. The return on total capital measures the company's ability to generate profit from the total capital employed in its operations.
In 2023, Pacira BioSciences Inc achieved a return on total capital of 6.27%, which was an improvement from the previous year's 4.84%. This signifies that the company was able to generate more profit relative to its total capital employed in 2023 compared to 2022.
Looking further back, the return on total capital was notably higher in 2021 at 7.46%, indicating a stronger performance in generating profits from invested capital. However, this metric dipped in 2020 and 2019 to 4.76% and 5.40%, respectively.
Overall, the trend in Pacira BioSciences Inc's return on total capital reflects some fluctuations, with improvements in certain years and declines in others. It suggests that the company's efficiency in generating returns from its total capital has varied over the past five years, potentially influenced by factors such as operational performance, capital allocation decisions, and overall market conditions.
Peer comparison
Dec 31, 2023