United Therapeutics Corporation (UTHR)
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 | 1,333,600 | 979,700 | 555,900 | 593,600 | -187,600 |
| Long-term debt | US$ in thousands | 300,000 | 800,000 | 800,000 | 800,000 | 600,000 |
| Total stockholders’ equity | US$ in thousands | 5,984,800 | 4,796,700 | 3,958,900 | 3,395,200 | 2,780,400 |
| Return on total capital | 21.22% | 17.50% | 11.68% | 14.15% | -5.55% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,333,600K ÷ ($300,000K + $5,984,800K)
= 21.22%
United Therapeutics Corp's return on total capital has shown positive performance over the past five years, ranging from -5.17% in 2019 to 17.73% in 2023. The company's return on total capital increased steadily from 2019 to 2023, indicating a consistent improvement in utilizing both debt and equity to generate profits.
The return on total capital of 17.73% in 2023 is higher than the previous years, highlighting the company's ability to efficiently deploy its capital to generate returns for its investors. This suggests that United Therapeutics Corp has effectively managed its capital structure and investments to create value for its stakeholders.
Overall, the positive trend in United Therapeutics Corp's return on total capital reflects the company's effectiveness in optimizing its capital resources to generate profits and create shareholder value.
Peer comparison
Dec 31, 2023