The AES Corporation (AES)
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 | 3,130,000 | 2,637,000 | 2,319,000 | 2,049,000 | 1,829,000 | 968,000 | 1,144,000 | 956,000 | 836,000 | 758,000 | 627,000 | 752,000 | 369,000 | 1,743,000 | 842,000 | 884,000 | 1,300,000 | 758,000 | 1,538,000 | 1,637,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,644,000 | 3,378,000 | 3,175,000 | 2,900,000 | 2,488,000 | 2,779,000 | 2,492,000 | 2,362,000 | 2,437,000 | 3,409,000 | 2,995,000 | 3,044,000 | 2,798,000 | 3,482,000 | 3,265,000 | 3,377,000 | 2,634,000 | 2,004,000 | 2,462,000 | 2,539,000 |
| Return on total capital | 85.89% | 78.06% | 73.04% | 70.66% | 73.51% | 34.83% | 45.91% | 40.47% | 34.30% | 22.24% | 20.93% | 24.70% | 13.19% | 50.06% | 25.79% | 26.18% | 49.35% | 37.82% | 62.47% | 64.47% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,130,000K ÷ ($—K + $3,644,000K)
= 85.89%
The Return on Total Capital for The AES Corporation has fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio started at a high of 64.47% in March 2020, indicating that the company was generating strong returns in relation to the total capital employed. However, there was a decline in the ratio in the subsequent periods, reaching a low of 13.19% in December 2021.
From December 2021 onwards, the Return on Total Capital showed an upward trend, improving to 85.89% by the end of December 2024. This suggests that the company was able to enhance its efficiency in utilizing capital to generate profits over the later period. The increasing trend in the ratio indicates a positive performance in terms of capital management and operational effectiveness.
Overall, the fluctuation in the Return on Total Capital of The AES Corporation indicates the company's ability to generate returns relative to the total capital invested, with fluctuations possibly reflecting changes in business strategies, investments, or operational performance over the period analyzed.