Chesapeake Energy Corp (CHK)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,221,000 | 3,811,000 | 969,000 | -9,422,000 | 12,000 |
| Long-term debt | US$ in thousands | 2,028,000 | 3,093,000 | 2,278,000 | 0 | 9,073,000 |
| Total stockholders’ equity | US$ in thousands | 10,729,000 | 9,124,000 | 5,671,000 | -5,341,000 | 4,364,000 |
| Return on total capital | 25.25% | 31.19% | 12.19% | — | 0.09% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,221,000K ÷ ($2,028,000K + $10,729,000K)
= 25.25%
Chesapeake Energy Corp's return on total capital has shown variability over the years. In 2023, the return on total capital stood at 25.25%, which represented a decrease from 2022 where it was 31.19%. Despite the decline, the company still generated a relatively strong return compared to the previous years. In 2021, the return on total capital was 12.19%, indicating an improvement from the marginal return of 0.09% in 2019. The absence of data for 2020 makes it difficult to assess the trend more accurately. Overall, the varying return on total capital indicates fluctuations in the company's efficiency in generating profits from its total capital base.
Peer comparison
Dec 31, 2023