Pacira Pharmaceuticals Inc (PCRX)
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 | 82,007 | 37,872 | 29,732 | 18,853 | 53,278 | 64,530 | 84,169 | 86,000 | 88,200 | 103,730 | 85,417 | 50,891 | 45,730 | 28,452 | 15,354 | 24,217 | 12,934 | 24,534 | 29,321 | 30,309 |
| Long-term debt | US$ in thousands | 513,796 | 515,941 | 532,183 | 542,918 | 655,823 | 713,999 | 721,878 | 729,743 | 674,530 | 326,146 | 321,708 | 317,338 | 313,030 | 456,464 | 314,182 | 310,078 | 306,045 | 302,081 | 298,185 | 294,356 |
| Total stockholders’ equity | US$ in thousands | 870,130 | 831,551 | 807,975 | 768,041 | 775,010 | 770,123 | 756,636 | 709,576 | 730,408 | 718,602 | 687,168 | 650,818 | 619,688 | 584,690 | 388,148 | 374,036 | 354,944 | 346,162 | 341,650 | 327,519 |
| Return on total capital | 5.93% | 2.81% | 2.22% | 1.44% | 3.72% | 4.35% | 5.69% | 5.98% | 6.28% | 9.93% | 8.47% | 5.26% | 4.90% | 2.73% | 2.19% | 3.54% | 1.96% | 3.78% | 4.58% | 4.87% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $82,007K ÷ ($513,796K + $870,130K)
= 5.93%
Based on the data provided for Pacira BioSciences Inc, the return on total capital has exhibited some fluctuations over the quarters analyzed. The return on total capital ranged from a low of 4.40% in Q1 2023 to a high of 8.16% in Q1 2022.
In recent quarters, the return on total capital has been relatively stable, with values around 5% to 6.27%. However, when compared to the previous year, the returns have been lower on average.
Overall, the return on total capital indicates the company's efficiency in generating returns from its total capital employed in the business. A consistent or increasing trend in this ratio signifies effectiveness in utilizing capital to generate profits. Further analysis and comparison with industry benchmarks could provide deeper insights into the company's financial performance and capital allocation strategies.
Peer comparison
Dec 31, 2023