Penumbra Inc (PEN)
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 | 22,287 | 81,389 | -21,492 | -7,501 | -38,942 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,150,930 | 1,178,940 | 998,858 | 953,927 | 641,498 |
| Return on total capital | 1.94% | 6.90% | -2.15% | -0.79% | -6.07% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $22,287K ÷ ($—K + $1,150,930K)
= 1.94%
Penumbra Inc's return on total capital experienced fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The return on total capital was negative in the first three years, with values of -6.07%, -0.79%, and -2.15% for 2020, 2021, and 2022, respectively. This indicates that during those years, the company's profitability from both debt and equity investments did not cover the total capital employed.
However, there was a positive turnaround in the following years, with the return on total capital being 6.90% in 2023 and 1.94% in 2024. These positive percentages suggest that Penumbra Inc's profitability improved in those years, indicating that the company generated a return that exceeded the total capital invested.
Overall, the trend in Penumbra Inc's return on total capital shows volatility but with a recent positive trend, suggesting that the company's ability to generate returns from its total capital improved in the later years of the period. It is essential for the company to sustain this positive momentum to enhance its overall financial performance and create value for its stakeholders.
Peer comparison
Dec 31, 2024