Ameren Corp (AEE)
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 | 1,933,000 | 1,905,000 | 1,741,000 | 1,535,000 | 1,383,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,371,000 | 11,349,000 | 10,508,000 | 9,700,000 | 8,938,000 |
| Return on total capital | 26.22% | 16.79% | 16.57% | 15.82% | 15.47% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,933,000K ÷ ($—K + $7,371,000K)
= 26.22%
Ameren Corp's return on total capital has exhibited a positive trend over the period from December 31, 2020, to December 31, 2024. The return on total capital increased steadily from 15.47% in 2020 to 26.22% in 2024. This indicates that Ameren Corp is utilizing its total capital more efficiently to generate profits for its stakeholders. The significant jump in return on total capital in 2024 suggests that the company may have improved its operational efficiency or implemented strategic initiatives that contributed to higher profitability relative to the capital employed. Overall, Ameren Corp's increasing return on total capital reflects positively on its financial performance and effective allocation of resources.
Peer comparison
Dec 31, 2024