Consolidated Edison Inc (ED)
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 | 3,325,000 | 4,031,000 | 2,978,000 | 2,688,000 | 2,451,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 21,961,000 | 21,158,000 | 20,687,000 | 20,037,000 | 18,847,000 |
| Return on total capital | 15.14% | 19.05% | 14.40% | 13.42% | 13.00% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,325,000K ÷ ($—K + $21,961,000K)
= 15.14%
Consolidated Edison Inc's return on total capital has shown a positive trend over the years, increasing from 13.00% as at December 31, 2020 to 15.14% as at December 31, 2024. The company experienced a notable improvement in 2023, where the return on total capital surged to 19.05%. This indicates that Consolidated Edison Inc has been more efficient in generating returns from its total capital over the period under review, reflecting positively on its financial performance. The upward trajectory in the return on total capital suggests that the company's capital utilization and operational efficiency have been improving, which may be a result of effective cost management, profitable investments, or strategic business decisions. Overall, the increasing trend in return on total capital for Consolidated Edison Inc signifies a favorable performance in utilizing its capital resources to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024