DT Midstream Inc (DTM)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 638,000 | 634,000 | 627,000 | 628,000 | 607,000 | 592,000 | 571,000 | 527,000 | |||
| Long-term debt | US$ in thousands | 3,065,000 | 3,064,000 | 3,062,000 | 3,061,000 | 3,059,000 | 3,058,000 | 3,057,000 | 3,033,000 | 3,036,000 | 3,037,000 | 3,037,000 |
| Total stockholders’ equity | US$ in thousands | 4,139,000 | 4,079,000 | 4,052,000 | 4,023,000 | 4,007,000 | 3,978,000 | 3,923,000 | 3,890,000 | 3,872,000 | 3,839,000 | 3,830,000 |
| Return on total capital | 8.86% | 8.88% | 8.81% | 8.87% | 8.59% | 8.41% | 8.18% | 7.61% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $638,000K ÷ ($3,065,000K + $4,139,000K)
= 8.86%
DT Midstream Inc's return on total capital has been relatively stable over the past eight quarters, ranging from 7.99% to 8.79%. This implies that the company is generating approximately 8% to 9% return for every dollar of total capital employed. The consistency in the return on total capital indicates that the company is effectively utilizing its capital resources to generate profits. However, it is important to compare this ratio with industry benchmarks and historical performance to get a better understanding of DT Midstream Inc's overall financial health and efficiency in capital management.
Peer comparison
Dec 31, 2023