DTE Energy Company (DTE)
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 | 2,357,000 | 1,787,000 | 1,407,000 | 2,006,000 | 1,808,000 |
| Long-term debt | US$ in thousands | 19,546,000 | 17,978,000 | 17,378,000 | 19,439,000 | 16,606,000 |
| Total stockholders’ equity | US$ in thousands | 11,050,000 | 10,397,000 | 8,705,000 | 12,425,000 | 11,672,000 |
| Return on total capital | 7.70% | 6.30% | 5.39% | 6.30% | 6.39% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,357,000K ÷ ($19,546,000K + $11,050,000K)
= 7.70%
DTE Energy Co.'s return on total capital has exhibited fluctuations over the past five years. The return on total capital was 7.09% in 2023, showing an improvement from the previous year's figure of 5.85% in 2022. However, it is worth noting that the return on total capital in 2023 is still lower than the 6.74% recorded in 2020.
Comparing to historical trends, the return on total capital in 2023 is slightly higher than the 5-year average return on total capital of 6.33% (average of 2023, 2022, 2021, 2020, 2019). This indicates a relatively stable performance in generating returns relative to the capital employed over the past five years, with a moderate improvement in 2023.
Overall, DTE Energy Co. has been able to maintain a reasonable return on total capital, reflecting an effective utilization of its capital resources to generate profits. Monitoring this ratio over time can provide insights into the company's ability to generate returns for its investors and stakeholders.
Peer comparison
Dec 31, 2023