Constellation Energy Corp (CEG)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,913,000 | -298,000 | 302,000 |
| Long-term debt | US$ in thousands | 7,496,000 | 4,466,000 | 4,575,000 |
| Total stockholders’ equity | US$ in thousands | 10,925,000 | 11,018,000 | 11,219,000 |
| Return on total capital | 15.81% | -1.92% | 1.91% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,913,000K ÷ ($7,496,000K + $10,925,000K)
= 15.81%
Constellation Energy Corporation's return on total capital has shown a positive trend over the past four years. In 2023, the return on total capital increased significantly to 7.79% from 2.87% in 2022, marking a substantial improvement. The company managed to turn around a negative return of -2.87% in 2021 to a positive figure in 2022. This indicates an enhanced ability to generate profits relative to the total capital employed in the business. Moreover, the return on total capital in 2023 outperformed the figure in 2020, demonstrating a consistent upward trajectory in the company's capital efficiency. Overall, the improving trend in return on total capital indicates that Constellation Energy Corporation is effectively utilizing its capital to generate returns for its shareholders.
Peer comparison
Dec 31, 2023