United Therapeutics Corporation (UTHR)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 1,534,900 1,441,000 1,396,400 1,426,378 1,333,436 1,213,981 1,194,454 1,013,990 1,022,572 976,656 863,429 929,859 651,864 625,880 643,681 559,886 708,094 667,203 619,311 740,221
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total stockholders’ equity US$ in thousands 6,444,000 6,100,900 5,697,200 5,338,100 5,984,800 5,712,100 5,411,000 5,123,200 4,796,700 4,562,200 4,318,400 4,176,300 3,958,900 3,829,700 3,639,500 3,445,400 3,395,200 3,283,100 3,093,700 2,948,500
Return on total capital 23.82% 23.62% 24.51% 26.72% 22.28% 21.25% 22.07% 19.79% 21.32% 21.41% 19.99% 22.27% 16.47% 16.34% 17.69% 16.25% 20.86% 20.32% 20.02% 25.11%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,534,900K ÷ ($—K + $6,444,000K)
= 23.82%

United Therapeutics Corporation's return on total capital has exhibited some fluctuations over the past few years. The ratio has ranged from a high of 26.72% in March 31, 2024, to a low of 16.25% in March 31, 2021. Overall, the company's return on total capital has generally been above 20% in recent quarters, indicating that United Therapeutics has been effectively utilizing its total capital to generate profits. This suggests that the company has been efficient in deploying its capital to generate returns for its investors. However, it is worth noting that there has been some variability in the ratio, which may warrant further investigation into the factors impacting the company's capital efficiency.