American Electric Power Company Inc (AEP)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	3,505,200	3,441,900	3,256,700	3,154,400	3,412,200	3,535,800	3,777,800	3,685,300	3,411,300	3,297,800	3,133,600	3,046,400	2,987,700	2,712,200	2,727,200	2,555,500	2,592,300	2,848,700	2,559,100	2,765,100
Long-term debt	US$ in thousands	37,652,700	36,715,500	36,762,000	36,239,100	34,314,600	33,646,600	32,982,700	30,855,700	31,300,700	32,056,500	30,659,300	30,214,800	28,986,400	28,155,500	26,637,700	25,783,000	25,126,800	24,553,500	24,174,400	22,898,200
Total stockholders’ equity	US$ in thousands	25,246,700	25,309,700	23,901,400	23,738,200	23,893,400	24,278,200	24,056,000	23,791,300	22,433,200	22,278,100	21,378,700	20,972,800	20,550,900	20,365,900	20,007,400	19,728,400	19,632,200	19,716,400	19,259,600	19,196,300
Return on total capital		5.57%	5.55%	5.37%	5.26%	5.86%	6.10%	6.62%	6.74%	6.35%	6.07%	6.02%	5.95%	6.03%	5.59%	5.85%	5.62%	5.79%	6.43%	5.89%	6.57%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,505,200K ÷ ($37,652,700K + $25,246,700K)
= 5.57%

American Electric Power Company Inc.'s return on total capital has shown a downward trend over the last eight quarters, decreasing from 6.02% in Q1 2022 to 5.56% in Q4 2023. Despite slight fluctuations, the company has maintained a relatively stable performance within the range of 5.21% to 5.88% during this period. This indicates that the company is generating a moderate return relative to its total capital invested, highlighting the efficiency with which it utilizes its resources to generate profits. However, the declining trend in return on total capital suggests a potential decrease in the company's profitability or efficiency in capital utilization over time, warranting further analysis and corrective measures to improve performance.