United Therapeutics Corporation (UTHR)
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 | 1,581,900 | 1,333,600 | 989,000 | 686,900 | 596,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,444,000 | 5,984,800 | 4,796,700 | 3,958,900 | 3,395,200 |
| Return on total capital | 24.55% | 22.28% | 20.62% | 17.35% | 17.57% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,581,900K ÷ ($—K + $6,444,000K)
= 24.55%
United Therapeutics Corporation's return on total capital has shown a positive trend over the years from December 31, 2020, where it stood at 17.57%, to December 31, 2024, reaching 24.55%. This indicates the company's ability to generate value from the total capital employed in its operations. The consistent increase in the return on total capital reflects the company's efficient utilization of both debt and equity to generate profits. The upward trajectory suggests that United Therapeutics Corporation has been improving its operational efficiency and profitability, which is a positive sign for stakeholders and investors.
Peer comparison
Dec 31, 2024