Chesapeake Utilities Corporation (CPK)
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 | 230,200 | 152,764 | 142,933 | 132,805 | 112,375 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,390,200 | 1,246,100 | 832,801 | 774,130 | 697,085 |
| Return on total capital | 16.56% | 12.26% | 17.16% | 17.16% | 16.12% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $230,200K ÷ ($—K + $1,390,200K)
= 16.56%
The return on total capital for Chesapeake Utilities Corporation has displayed variability over the past five years. The metric stood at 16.12% as of December 31, 2020, showing a slight increase to 17.16% by the end of 2021. This trend continued into 2022, with the return on total capital maintaining the same level as the previous year. However, there was a notable decline in performance by the end of 2023, dropping to 12.26%.
Despite this decrease, the company managed to rebound in 2024, achieving a return on total capital of 16.56%. It is essential to analyze the factors contributing to these fluctuations in order to assess the efficiency of Chesapeake Utilities Corporation in generating returns relative to its total capital employed.
Peer comparison
Dec 31, 2024