DT Midstream Inc (DTM)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 638,000 | 607,000 | 523,000 |
| Long-term debt | US$ in thousands | 3,065,000 | 3,059,000 | 3,036,000 |
| Total stockholders’ equity | US$ in thousands | 4,139,000 | 4,007,000 | 3,872,000 |
| Return on total capital | 8.86% | 8.59% | 7.57% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $638,000K ÷ ($3,065,000K + $4,139,000K)
= 8.86%
The return on total capital for DT Midstream Inc has shown a positive trend over the past four years. The company's return on total capital increased steadily from 7.17% in 2020 to 8.74% in 2023. This indicates that the company has been effectively utilizing both its debt and equity to generate profits. The consistent improvement in return on total capital reflects the company's ability to efficiently deploy its capital to generate returns for its investors. It also suggests effective management of both debt and equity components of its capital structure, contributing to overall profitability and shareholder value.
Peer comparison
Dec 31, 2023