CenterPoint Energy Inc (CNP)

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	1,760,000	1,793,000	1,659,000	1,630,000	1,566,000	1,548,000	1,442,000	1,387,000	1,363,000	1,312,000	1,336,000	1,275,000	1,039,000	1,056,000	1,111,000	1,105,000	1,099,000	964,000	833,000	791,000
Long-term debt	US$ in thousands	17,559,000	16,838,000	16,032,000	15,783,000	14,836,000	13,435,000	13,237,000	12,106,000	15,558,000	15,394,000	15,853,000	14,048,000	11,521,000	11,946,000	10,937,000	13,830,000	14,244,000	14,014,000	14,121,000	13,759,000
Total stockholders’ equity	US$ in thousands	9,667,000	9,585,000	10,366,000	10,356,000	10,042,000	9,989,000	10,023,000	9,951,000	9,415,000	8,865,000	8,870,000	8,716,000	8,348,000	8,388,000	8,392,000	6,970,000	8,359,000	8,346,000	8,257,000	8,216,000
Return on total capital		6.46%	6.79%	6.28%	6.24%	6.29%	6.61%	6.20%	6.29%	5.46%	5.41%	5.40%	5.60%	5.23%	5.19%	5.75%	5.31%	4.86%	4.31%	3.72%	3.60%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,760,000K ÷ ($17,559,000K + $9,667,000K)
= 6.46%

Centerpoint Energy Inc.'s return on total capital has shown a fluctuating trend over the past eight quarters. The return on total capital ranged from 4.92% in Q2 2022 to 6.29% in Q3 2023. Overall, the company's return on total capital has been relatively stable, with the most recent quarter, Q4 2023, showing a return of 6.09%. This indicates that the company is effectively utilizing its total capital to generate profits for its shareholders. However, it is important for investors and stakeholders to continue monitoring this metric to ensure sustained profitability and efficiency in capital allocation.