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.