Dominion Energy Inc (D)
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 | 3,414,000 | 1,596,000 | 3,019,000 | 2,055,000 | 1,544,000 |
| Long-term debt | US$ in thousands | 42,526,000 | 39,680,000 | 35,996,000 | 31,996,000 | 32,055,000 |
| Total stockholders’ equity | US$ in thousands | 27,529,000 | 27,659,000 | 27,308,000 | 26,117,000 | 31,994,000 |
| Return on total capital | 4.87% | 2.37% | 4.77% | 3.54% | 2.41% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,414,000K ÷ ($42,526,000K + $27,529,000K)
= 4.87%
Dominion Energy Inc's return on total capital has shown fluctuation over the past five years. In 2020, the company achieved the highest return on total capital at 6.58%, indicating efficient utilization of both debt and equity to generate profits. However, in subsequent years, the return on total capital slightly decreased to 5.18% in 2021, then increased to 5.96% in 2022 before declining again to 5.15% in 2023. Despite the fluctuations, Dominion Energy Inc has generally maintained a consistent level of return on total capital over the analyzed period, showcasing the company's ability to generate profits relative to its invested capital. Further analysis of the company's capital structure and operational efficiency may provide insights into the factors influencing these fluctuations.
Peer comparison
Dec 31, 2023