Regenxbio Inc (RGNX)
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 | -256,784 | -257,151 | 167,524 | -105,239 | -148,998 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 311,742 | 516,195 | 764,298 | 377,753 | 450,197 |
| Return on total capital | -82.37% | -49.82% | 21.92% | -27.86% | -33.10% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-256,784K ÷ ($—K + $311,742K)
= -82.37%
Return on total capital is a key financial metric that indicates the efficiency of a company in generating profits from its total capital employed, including both equity and debt. A negative return on total capital signifies that the company is not effectively utilizing its capital to generate earnings.
Regenxbio Inc's return on total capital has been volatile over the past five years, ranging from a high of 20.93% in 2021 to a low of -86.01% in 2023. The negative returns in 2023 and 2022 indicate significant inefficiencies in the company's capital allocation and operational performance.
In 2021, the company showed a positive return on total capital of 20.93%, indicating that it was able to generate profits from its capital investments. However, the returns in 2020 and 2019 were negative, showing a lack of profitability relative to the capital employed.
Overall, the fluctuating trend in Regenxbio Inc's return on total capital suggests inconsistencies in the company's ability to generate returns for its shareholders and creditors. It is essential for the company to focus on improving its operational efficiency and capital allocation strategies to enhance its profitability and long-term sustainability.
Peer comparison
Dec 31, 2023