Edison International (EIX)
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 | 2,627,000 | 1,483,000 | 1,477,000 | 1,336,000 | 1,847,000 |
| Long-term debt | US$ in thousands | 30,316,000 | 27,025,000 | 24,170,000 | 19,632,000 | 17,864,000 |
| Total stockholders’ equity | US$ in thousands | 15,501,000 | 15,621,000 | 15,888,000 | 14,048,000 | 15,496,000 |
| Return on total capital | 5.73% | 3.48% | 3.69% | 3.97% | 5.54% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,627,000K ÷ ($30,316,000K + $15,501,000K)
= 5.73%
Edison International's return on total capital has shown relatively stable performance over the past five years, ranging from 6.03% to 6.88%. In 2023, the return on total capital was 6.64%, a slight increase compared to the previous year. This indicates that the company has been able to effectively generate returns from the total capital employed in its operations. While the return on total capital is relatively consistent, further analysis of the company's financial statements and business operations may be necessary to understand the factors influencing this metric and identify potential areas for improvement.
Peer comparison
Dec 31, 2023