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.