TG Therapeutics Inc (TGTX)
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 | 25,677 | -192,839 | -344,770 | -273,594 | -167,583 |
| Long-term debt | US$ in thousands | 100,118 | 71,135 | 66,788 | 7,716 | 28,970 |
| Total stockholders’ equity | US$ in thousands | 160,502 | 58,587 | 237,153 | 519,350 | 38,615 |
| Return on total capital | 9.85% | -148.66% | -113.43% | -51.91% | -247.96% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $25,677K ÷ ($100,118K + $160,502K)
= 9.85%
TG Therapeutics Inc's return on total capital has fluctuated significantly over the past five years. In 2023, the company achieved a return on total capital of 9.85%, indicating a positive performance in generating profits relative to its total capital employed. This represents a notable improvement compared to the negative returns in the previous years, where the company faced challenges in effectively utilizing its capital resources.
The return on total capital was particularly poor in 2019 and 2022, with -247.96% and -148.66% respectively, suggesting that the company struggled to generate returns that exceed its total capital costs during those periods. However, there was a slight improvement in 2021 and 2020, although the returns remained negative at -113.43% and -51.91% respectively.
Overall, TG Therapeutics Inc's return on total capital performance indicates a recent positive trend in effectively generating profits relative to the capital employed. However, the company will need to sustain and further improve this performance to ensure long-term profitability and value creation for its stakeholders.
Peer comparison
Dec 31, 2023