Quidel Corporation (QDEL)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 139,100 | 185,500 | 216,000 | 322,600 |
| Long-term debt | US$ in thousands | 400 | 700 | 800 | — |
| Total stockholders’ equity | US$ in thousands | 5,005,900 | 4,966,700 | 5,002,500 | 4,996,500 |
| Return on total capital | 2.78% | 3.73% | 4.32% | 6.46% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $139,100K ÷ ($400K + $5,005,900K)
= 2.78%
Quidel Corporation's return on total capital has exhibited a declining trend over the recent quarters. The return on total capital was 6.46% in March 31, 2023, which decreased to 4.32% in June 30, 2023, and further dropped to 3.73% in September 30, 2023, before reaching its lowest point at 2.78% on December 31, 2023. This decreasing trend indicates that the company may be facing challenges in generating profits relative to the total capital employed in its operations. Further analysis may be required to understand the factors contributing to this decline and to identify strategies for improvement.
Peer comparison
Dec 31, 2023