Quidel Corporation (QDEL)

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
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	—	1,200	—	—
Total stockholders’ equity	US$ in thousands	5,005,900	4,966,700	5,002,500	4,996,500	4,934,600	4,795,300	4,919,600
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.