Black Hills Corporation (BKH)

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	503,000	476,230	498,201	491,117	472,700	466,193	447,901	456,774	455,244	439,196	449,590	444,467	409,429	421,405	413,766	413,433	428,303	423,711	412,028	399,096
Long-term debt	US$ in thousands	4,250,200	4,248,800	4,247,100	3,802,800	3,801,200	3,799,510	3,955,740	3,954,410	3,607,300	4,131,030	4,129,660	4,128,290	4,126,920	4,125,570	3,530,220	3,529,160	3,528,100	3,526,890	3,532,890	3,136,890
Total stockholders’ equity	US$ in thousands	3,501,500	3,446,600	3,357,300	3,333,900	3,215,300	3,167,320	3,110,020	3,097,950	2,994,900	2,886,620	2,885,450	2,871,920	2,787,090	2,697,520	2,659,040	2,624,510	2,561,380	2,519,050	2,513,290	2,523,170
Return on total capital		6.49%	6.19%	6.55%	6.88%	6.74%	6.69%	6.34%	6.48%	6.90%	6.26%	6.41%	6.35%	5.92%	6.18%	6.69%	6.72%	7.03%	7.01%	6.81%	7.05%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $503,000K ÷ ($4,250,200K + $3,501,500K)
= 6.49%

Based on the provided data, Black Hills Corporation's return on total capital has shown some fluctuations over the various quarters. The ratio ranged from a low of 5.92% in December 31, 2021, to a high of 7.05% in March 31, 2020. Over the recent quarters, the return on total capital has been hovering around the mid-6% range, indicating a relatively stable performance in generating returns from the total capital employed.

While there have been fluctuations in the ratio over the quarters, the company has managed to maintain the return on total capital above 6%, which suggests that Black Hills Corporation is effectively utilizing its capital to generate returns for its stakeholders. It is important for investors and stakeholders to monitor this ratio over time to assess the company's ability to generate profits relative to the total capital invested in the business.