Quidel Corporation (QDEL)

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	-1,943,200	703,332	809,900	901,059	1,041,580
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,984,500	5,005,900	4,934,600	1,929,360	1,332,700
Return on total capital		-65.11%	14.05%	16.41%	46.70%	78.16%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-1,943,200K ÷ ($—K + $2,984,500K)
= -65.11%

Quidel Corporation's return on total capital has shown a significant decrease over the years, as evidenced by the figures provided. In 2020, the return on total capital was notably high at 78.16%, indicating the company generated substantial returns relative to the total capital employed. However, there was a notable decline in 2021 to 46.70%, and a further decrease to 16.41% in 2022.

In 2023, the return on total capital continued to decrease to 14.05%, reflecting a diminishing trend in the company's ability to generate returns on its total capital. The most concerning observation comes from the data for 2024, where the return on total capital is negative at -65.11%, signifying that the company's total capital employed exceeded its returns, resulting in a loss.

This downward trend in return on total capital raises questions about the company's efficiency in utilizing its capital resources effectively to generate profits. It suggests a need for Quidel Corporation to assess and potentially adjust its capital allocation strategies to improve its financial performance and long-term sustainability.