Black Hills Corporation (BKH)

Return on total capital

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	406,042	398,810	393,344	408,894
Long-term debt	US$ in thousands	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	3,140,100	3,049,240	3,049,670	2,950,300
Total stockholders’ equity	US$ in thousands	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	2,362,120	2,329,480	2,316,750	2,279,160
Return on total capital		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%	7.38%	7.41%	7.33%	7.82%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $472,700K ÷ ($3,801,200K + $3,215,300K)
= 6.74%

The return on total capital for Black Hills Corporation has been relatively stable and consistent over the past eight quarters, ranging from 5.76% to 6.21%. This indicates that the company has been efficient in generating returns from its total capital employed in its operations. The average return on total capital over this period is approximately 6.02%.

Although there have been minor fluctuations in the return on total capital, the overall trend appears to be steady, with no significant deviations from the average. This suggests that Black Hills Corporation has been able to effectively utilize its capital resources to generate returns for its shareholders and investors.

The consistency in the return on total capital reflects the company's ability to effectively manage its assets and liabilities, as well as optimize its capital structure to maximize profitability. Overall, the stable return on total capital indicates that Black Hills Corporation has been maintaining a sustainable level of financial performance over the analyzed period.