DTE Energy Company (DTE)
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 | 2,357,000 | 2,150,000 | 2,160,000 | 1,909,000 | 1,787,000 | 1,757,000 | 1,255,000 | 1,425,000 | 1,407,000 | 1,398,000 | 1,982,000 | 2,098,000 | 2,116,000 | 1,988,000 | 1,870,000 | 1,765,000 | 1,808,000 | 1,807,000 | 1,789,000 | 1,820,000 |
| Long-term debt | US$ in thousands | 19,546,000 | 19,123,000 | 19,221,000 | 19,368,000 | 17,978,000 | 18,846,000 | 18,255,000 | 18,249,000 | 17,378,000 | 17,222,000 | 22,909,000 | 20,432,000 | 19,439,000 | 18,660,000 | 17,997,000 | 17,398,000 | 16,606,000 | 12,708,000 | 12,418,000 | 11,624,000 |
| Total stockholders’ equity | US$ in thousands | 11,050,000 | 10,850,000 | 10,481,000 | 10,642,000 | 10,397,000 | 8,980,000 | 8,574,000 | 8,863,000 | 8,705,000 | 8,567,000 | 12,378,000 | 12,552,000 | 12,425,000 | 12,323,000 | 11,724,000 | 11,822,000 | 11,672,000 | 10,740,000 | 10,396,000 | 10,545,000 |
| Return on total capital | 7.70% | 7.17% | 7.27% | 6.36% | 6.30% | 6.31% | 4.68% | 5.26% | 5.39% | 5.42% | 5.62% | 6.36% | 6.64% | 6.42% | 6.29% | 6.04% | 6.39% | 7.71% | 7.84% | 8.21% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 shown a consistent upward trend over the past eight quarters, indicating an improvement in the company's ability to generate returns relative to the total capital employed in its operations. The return on total capital has increased from 5.05% in Q3 2022 to 7.09% in Q4 2023, reflecting a positive trend in the company's operational efficiency and profitability.
The consistent improvement in return on total capital suggests that DTE Energy Co. is effectively utilizing its capital resources to generate profits. This could be attributed to various factors such as effective cost management, improved operational performance, or strategic investments that are yielding positive returns.
Overall, the increasing trend in return on total capital for DTE Energy Co. indicates a positive financial performance and efficiency in capital allocation, which bodes well for the company's strategic position and long-term sustainability.
Peer comparison
Dec 31, 2023