Supernus Pharmaceuticals Inc (SUPN)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	4,194	38,528	29,919	59,270	65,413	35,337	68,942	92,510	92,871	130,083	153,997	170,320	188,083	188,802	175,255	170,365	165,694	166,697	162,190	152,235
Long-term debt	US$ in thousands	—	—	—	—	—	0	0	400,382	379,252	374,788	370,383	366,038	361,751	357,521	353,349	349,232	345,170	341,163	337,210	333,310
Total stockholders’ equity	US$ in thousands	1	912,191	919,908	912,150	0	852,798	841,434	828,446	815,851	810,468	785,579	754,444	744,858	708,879	665,974	613,383	595,428	557,257	522,904	480,018
Return on total capital		419,400.00%	4.22%	3.25%	6.50%	—	4.14%	8.19%	7.53%	7.77%	10.98%	13.32%	15.20%	17.00%	17.70%	17.19%	17.70%	17.62%	18.55%	18.86%	18.72%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,194K ÷ ($—K + $1K)
= 419,400.00%

To analyze Supernus Pharmaceuticals Inc's return on total capital, we observe fluctuations in the ratio over the past eight quarters. The return on total capital ranged between 1.45% and 5.53% during this period. Notably, the ratio peaked at 5.53% in Q1 2022, subsequently experiencing a decline in Q2 and Q3 2022 before a slight recovery in Q4 2022.

In the latest quarter, Q4 2023, Supernus Pharmaceuticals Inc's return on total capital stood at 1.45%, showing a decrease compared to the previous quarter, Q3 2023, where it was 2.89%. This decline indicates potential challenges in utilizing the company's total capital efficiently to generate returns for shareholders.

Overall, fluctuations in return on total capital can reflect changes in the company's operational efficiency, profitability, and capital structure. It is essential for stakeholders to monitor this ratio closely to assess Supernus Pharmaceuticals Inc's performance and financial health over time.