American Electric Power Co Inc (AEP)

Return on total capital

Dec 31, 2024 Sep 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 Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 4,516,400 4,471,400 3,978,100 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
Long-term debt US$ in thousands 39,307,800 39,147,700 38,637,300 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
Total stockholders’ equity US$ in thousands 26,943,800 26,617,400 25,803,300 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
Return on total capital 6.82% 6.80% 6.17% 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%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,516,400K ÷ ($39,307,800K + $26,943,800K)
= 6.82%

American Electric Power Co Inc's return on total capital has shown fluctuations over the past few years. Starting at 5.79% as of December 31, 2019, the ratio dipped slightly to 5.62% by March 31, 2020, before gradually increasing to 6.82% by December 31, 2024. The ratio experienced both ups and downs within this period, reaching its peak at 6.82% at the end of 2024. Overall, the trend indicates some variability but a generally positive trajectory in the company's return on total capital.