DT Midstream Inc (DTM)
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 | 657,000 | 650,000 | 619,000 | 534,000 | 553,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,627,000 | 4,139,000 | 4,007,000 | 3,872,000 | 4,073,000 |
| Return on total capital | 14.20% | 15.70% | 15.45% | 13.79% | 13.58% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $657,000K ÷ ($—K + $4,627,000K)
= 14.20%
The return on total capital for DT Midstream Inc has shown a generally positive trend over the five-year period from December 31, 2020, to December 31, 2024.
Starting at 13.58% in 2020, the return on total capital increased steadily to 15.70% by the end of 2023, indicating an improvement in the company's efficiency in generating profit relative to the capital invested.
However, there was a slight decrease in the return on total capital to 14.20% in 2024. Despite this slight dip, the company still maintained a relatively strong level of return on total capital.
Overall, the consistent improvement in the return on total capital from 2020 to 2023 demonstrates DT Midstream Inc's ability to utilize its total capital effectively to generate returns for its investors. Monitoring this ratio in the future will be crucial to evaluate the company's ongoing financial performance and efficiency in capital utilization.
Peer comparison
Dec 31, 2024