Constellation Energy Corp (CEG)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,914,000 | 2,844,000 | 1,590,000 | -71,000 | -297,000 | -284,000 | |||
| Long-term debt | US$ in thousands | 7,496,000 | 7,512,000 | 6,156,000 | 5,763,000 | 4,466,000 | 4,480,000 | 4,507,000 | 4,548,000 | 4,575,000 |
| Total stockholders’ equity | US$ in thousands | 10,925,000 | 11,666,000 | 11,256,000 | 10,728,000 | 11,018,000 | 10,803,000 | 11,000,000 | 11,105,000 | 11,219,000 |
| Return on total capital | 15.82% | 14.83% | 9.13% | -0.43% | -1.92% | -1.86% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,914,000K ÷ ($7,496,000K + $10,925,000K)
= 15.82%
Constellation Energy Corporation's return on total capital has shown variability over the past five quarters. It ranged from a low of 0.37% in Q1 2023 to a high of 7.79% in Q4 2023. The upward trend in return on total capital indicates the company's ability to generate profits relative to its total capital investment. However, the fluctuation in the ratio suggests some inconsistency in the utilization of capital resources to generate returns. Further analysis of the company's operating and financial performance is recommended to understand the factors influencing these fluctuations.
Peer comparison
Dec 31, 2023