Black Hills Corporation (BKH)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	455,700	444,581	396,317	403,996	366,549
Long-term debt	US$ in thousands	3,801,200	3,607,300	4,126,920	3,528,100	3,140,100
Total stockholders’ equity	US$ in thousands	3,215,300	2,994,900	2,787,090	2,561,380	2,362,120
Return on total capital		6.49%	6.73%	5.73%	6.63%	6.66%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $455,700K ÷ ($3,801,200K + $3,215,300K)
= 6.49%

The return on total capital of Black Hills Corporation has been relatively stable over the past five years. The company's return on total capital ranged from 5.58% in 2021 to 6.93% in 2019. In 2023, the return on total capital increased to 6.21%, showing a slight improvement compared to the previous year. This indicates that the company is effectively generating returns on the total capital invested in its operations, with fluctuations over the years likely reflecting changes in business performance and economic conditions. While the return on total capital is an important measure of profitability and efficiency, further analysis would be needed to understand the specific factors driving these fluctuations and to assess the company's overall financial health.