Consolidated Edison Inc (ED)
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 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,028,000 | 3,982,000 | 4,025,000 | 4,011,000 | 3,010,000 | 2,842,000 | 2,767,000 | 2,705,000 | 2,441,000 | 2,157,000 | 2,098,000 | 2,129,000 | 2,208,000 | 2,603,000 | 2,616,000 | 2,628,000 | 2,662,000 | 2,752,000 | 2,727,000 | 2,695,000 |
| Long-term debt | US$ in thousands | 21,989,000 | 20,650,000 | 20,648,000 | 20,645,000 | 22,439,000 | 22,350,000 | 22,361,000 | 22,583,000 | 22,604,000 | 21,841,000 | 21,666,000 | 20,614,000 | 20,382,000 | 19,206,000 | 19,149,000 | 19,423,000 | 18,527,000 | 17,537,000 | 17,496,000 | 16,933,000 |
| Total stockholders’ equity | US$ in thousands | 21,158,000 | 21,078,000 | 20,805,000 | 20,843,000 | 20,687,000 | 20,748,000 | 20,387,000 | 20,378,000 | 20,037,000 | 20,037,000 | 19,743,000 | 19,033,000 | 18,847,000 | 18,494,000 | 18,225,000 | 18,261,000 | 18,022,000 | 17,959,000 | 17,709,000 | 17,369,000 |
| Return on total capital | 9.34% | 9.54% | 9.71% | 9.67% | 6.98% | 6.59% | 6.47% | 6.30% | 5.72% | 5.15% | 5.07% | 5.37% | 5.63% | 6.90% | 7.00% | 6.97% | 7.28% | 7.75% | 7.75% | 7.86% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,028,000K ÷ ($21,989,000K + $21,158,000K)
= 9.34%
Consolidated Edison, Inc.'s return on total capital has been relatively stable over the past eight quarters, ranging between 5.11% and 6.37%. The company's return on total capital is a key indicator of its efficiency in generating profits relative to the total capital invested in the business.
The return on total capital for Q1 2023 was 6.37%, showing a slight decrease compared to the previous quarter. This indicates that the company may have experienced challenges in efficiently utilizing its total capital to generate profits during that period.
Overall, Consolidated Edison, Inc.'s return on total capital has remained within a narrow range, reflecting a consistent performance in terms of generating returns on the capital employed in its operations. However, monitoring any fluctuations in this ratio is essential to assess the company's ongoing financial performance and efficiency in utilizing its capital resources.
Peer comparison
Dec 31, 2023