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.