Constellation Energy Corp (CEG)
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 | 4,017,000 | 1,738,000 | -291,000 | 449,000 | 1,193,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 13,166,000 | 10,925,000 | 11,018,000 | 11,219,000 | 12,399,000 |
| Return on total capital | 30.51% | 15.91% | -2.64% | 4.00% | 9.62% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,017,000K ÷ ($—K + $13,166,000K)
= 30.51%
Constellation Energy Corp's return on total capital has exhibited fluctuating trends over the years. In 2020, the return on total capital stood at 9.62%, indicating a decent performance. However, there was a significant decline in 2021, with the return dropping to 4.00%. The trend worsened in 2022, as the return on total capital turned negative, standing at -2.64%, suggesting potential issues in generating returns from the total capital employed.
However, there was a remarkable turnaround in 2023, with the return on total capital increasing substantially to 15.91%, indicating improved efficiency in utilizing the company's total capital. The positive trend continued in 2024, with a notable increase in the return on total capital to 30.51%, reflecting a robust performance and effective utilization of capital resources.
Overall, Constellation Energy Corp's return on total capital has shown volatility, but the recent improvements indicate a positive trajectory in generating returns from the total capital employed, which is a favorable sign for the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024