Duke Energy Corporation (DUK)
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 | 6,293,000 | 5,289,000 | 6,383,000 | 3,305,000 | 6,471,000 |
| Long-term debt | US$ in thousands | 72,452,000 | 65,873,000 | 60,448,000 | 55,625,000 | 54,985,000 |
| Total stockholders’ equity | US$ in thousands | 49,112,000 | 49,322,000 | 49,296,000 | 47,964,000 | 46,822,000 |
| Return on total capital | 5.18% | 4.59% | 5.82% | 3.19% | 6.36% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $6,293,000K ÷ ($72,452,000K + $49,112,000K)
= 5.18%
Duke Energy Corp.'s return on total capital has demonstrated a fluctuating trend over the past five years. In 2023, the return on total capital stood at 5.61%, showing a slight increase from the previous year's 5.25%. This improvement suggests the company's ability to generate earnings in relation to its total capital invested has slightly strengthened.
Comparing the latest figure to 2021 and 2020, Duke Energy Corp. has exhibited a positive trend in its return on total capital, indicating an enhanced efficiency in utilizing its capital to generate profits. Notably, the 2023 return on total capital of 5.61% marks the highest ratio within the five-year period under review.
However, it is worth noting that in 2019, Duke Energy Corp. achieved a notably higher return on total capital of 5.43% compared to 2023. This suggests that while the company has shown improvement in recent years, it has yet to surpass the performance level achieved four years ago.
Overall, Duke Energy Corp.'s return on total capital reflects a generally stable performance with a recent upward trend, showcasing the company's ability to effectively utilize its capital to generate returns for its shareholders.
Peer comparison
Dec 31, 2023