Supernus Pharmaceuticals Inc (SUPN)
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 | 81,666 | -1 | 46,124 | 92,871 | 188,083 |
| Long-term debt | US$ in thousands | — | — | — | 379,252 | 361,751 |
| Total stockholders’ equity | US$ in thousands | 1,035,730 | 921,516 | 886,204 | 815,851 | 744,858 |
| Return on total capital | 7.88% | -0.00% | 5.20% | 7.77% | 17.00% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $81,666K ÷ ($—K + $1,035,730K)
= 7.88%
Supernus Pharmaceuticals Inc's return on total capital has experienced fluctuations over the years. The ratio was 17.00% as of December 31, 2020, indicating a strong performance in utilizing its total capital to generate returns. However, there was a notable decrease to 7.77% by the end of 2021, suggesting a decline in efficiency in generating profits relative to its total invested capital.
Subsequently, the return on total capital further decreased to 5.20% by December 31, 2022, indicating a continued challenge in optimizing capital efficiency. The ratio dropped to -0.00% by December 31, 2023, which may suggest that the company may have had difficulty generating profits relative to its total capital during that period.
However, there was a slight improvement in performance as the return on total capital increased to 7.88% by December 31, 2024. Despite the fluctuating trend, it is essential for Supernus Pharmaceuticals Inc to closely monitor and assess its capital allocation and operational efficiency to ensure sustainable profitability and long-term value creation for its shareholders.
Peer comparison
Dec 31, 2024