Repligen Corporation (RGEN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 66,083 | 220,302 | 164,821 | 69,985 | 35,443 |
| Long-term debt | US$ in thousands | 510,143 | 0 | — | 243,737 | 232,767 |
| Total stockholders’ equity | US$ in thousands | 1,971,200 | 1,910,700 | 1,750,070 | 1,529,150 | 1,059,770 |
| Return on total capital | 2.66% | 11.53% | 9.42% | 3.95% | 2.74% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $66,083K ÷ ($510,143K + $1,971,200K)
= 2.66%
Repligen Corp.'s return on total capital has varied over the past five years. In 2023, the return on total capital decreased significantly to 0.94%, down from 8.93% in 2022 and 8.63% in 2021. This decline indicates that the company's efficiency in generating returns from its total capital has deteriorated compared to the previous years.
The lower return on total capital in 2023 could be a result of various factors such as increased capital expenditures, declining profitability, or inefficient use of resources. It is essential for the company to closely evaluate its capital allocation strategies to improve its return on total capital and enhance shareholder value in the coming periods.
Peer comparison
Dec 31, 2023