Pacira BioSciences, Inc. (PCRX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -49,667 | 82,007 | 53,278 | 89,924 | 51,516 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 778,348 | 870,130 | 775,010 | 730,408 | 619,688 |
| Return on total capital | -6.38% | 9.42% | 6.87% | 12.31% | 8.31% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-49,667K ÷ ($—K + $778,348K)
= -6.38%
Based on the data provided, Pacira BioSciences, Inc.'s return on total capital has shown variability over the years.
In 2020, the return on total capital was reported at 8.31%, indicating that the company generated a return on the capital employed.
By the end of 2021, Pacira BioSciences improved its performance with a return on total capital of 12.31%, suggesting increased efficiency in utilizing its total capital to generate profits.
However, in 2022, the return on total capital decreased to 6.87%, which may indicate challenges or inefficiencies in capital utilization during that period.
The following year, by December 31, 2023, the return on total capital improved to 9.42%, signifying a recovery or optimization in the company's capital management.
In 2024, the return on total capital turned negative, standing at -6.38%. This negative figure suggests that the company's capital employed did not generate positive returns and may indicate financial difficulties or operational challenges during that period.
Overall, Pacira BioSciences' return on total capital has displayed fluctuations, highlighting the importance of efficient capital allocation and management to sustain profitability and value creation for its stakeholders.
Peer comparison
Dec 31, 2024