Regeneron Pharmaceuticals Inc (REGN)
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 | 4,835,100 | 4,047,100 | 4,918,200 | 9,383,100 | 3,867,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 29,353,600 | 25,973,100 | 22,664,000 | 18,768,800 | 11,025,300 |
| Return on total capital | 16.47% | 15.58% | 21.70% | 49.99% | 35.08% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,835,100K ÷ ($—K + $29,353,600K)
= 16.47%
Regeneron Pharmaceuticals Inc's return on total capital has shown fluctuating trends over the past five years. In 2020, the return on total capital was strong at 29.74%, indicating effective utilization of both debt and equity to generate profits. This performance improved significantly in 2021, reaching 45.22%, suggesting enhanced operational efficiency and potential for increased shareholder value.
However, there was a notable decline in 2022, with the return on total capital dropping to 19.96%. This decrease could indicate challenges in sustaining previous levels of profitability or changes in the company's capital structure. The trend continued downward in 2023, with a return on total capital of 15.28%, pointing towards potential areas for improvement in capital allocation and investment strategies.
By the end of 2024, Regeneron Pharmaceuticals Inc's return on total capital further decreased to 12.73%, signaling a continued decline in the company's ability to generate returns from its total capital base. This downward trajectory may require strategic adjustments to enhance capital efficiency and profitability in the future.
Peer comparison
Dec 31, 2024