Black Hills Corporation (BKH)
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 | 491,100 | 455,700 | 444,581 | 396,317 | 403,996 |
| Long-term debt | US$ in thousands | 4,250,200 | 3,801,200 | 3,607,300 | 4,126,920 | 3,528,100 |
| Total stockholders’ equity | US$ in thousands | 3,501,500 | 3,215,300 | 2,994,900 | 2,787,090 | 2,561,380 |
| Return on total capital | 6.34% | 6.49% | 6.73% | 5.73% | 6.63% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $491,100K ÷ ($4,250,200K + $3,501,500K)
= 6.34%
Black Hills Corporation's return on total capital has fluctuated over the past five years, with values ranging from 5.73% to 6.73%. In general, the company has been able to generate returns above 5%, indicating efficiency in utilizing its total capital to generate profits. However, it is essential for the firm to maintain consistency in its return on total capital to ensure sustained financial health and attractiveness to investors. The slight decrease in return on total capital from 2022 to 2024 should be monitored and analyzed further to identify potential areas for improvement or optimization in the company's capital utilization strategies.
Peer comparison
Dec 31, 2024