Penumbra Inc (PEN)

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	73,551	43,355	36,164	18,136	6,082	-38,808	-35,461	-25,010	-7,501	30,811	1,872	-26,089	-38,942	-26,618	6,516	36,966	47,508	43,598	9,773	6,255
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,178,940	1,104,140	1,066,540	1,024,470	998,858	973,752	970,015	959,302	953,927	690,939	673,376	655,091	641,498	622,406	624,794	488,933	485,892	467,332	454,091	436,732
Return on total capital		6.24%	3.93%	3.39%	1.77%	0.61%	-3.99%	-3.66%	-2.61%	-0.79%	4.46%	0.28%	-3.98%	-6.07%	-4.28%	1.04%	7.56%	9.78%	9.33%	2.15%	1.43%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $73,551K ÷ ($—K + $1,178,940K)
= 6.24%

Penumbra Inc's return on total capital has shown a positive trend over the past eight quarters, with consistent improvement in each successive quarter. The company's return on total capital increased from a low of -3.88% in Q3 2022 to a high of 7.62% in Q4 2023, indicating a steady and positive growth trajectory. This demonstrates that Penumbra Inc has been effectively utilizing its total capital to generate returns for its investors. The company's ability to consistently improve its return on total capital reflects positively on its operational efficiency and financial performance.