Edison International (EIX)
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 | 3,432,000 | 3,127,000 | 1,831,000 | 1,714,000 | 1,468,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 15,565,000 | 15,501,000 | 15,621,000 | 15,888,000 | 14,048,000 |
| Return on total capital | 22.05% | 20.17% | 11.72% | 10.79% | 10.45% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,432,000K ÷ ($—K + $15,565,000K)
= 22.05%
Based on the provided data, Edison International's return on total capital has shown a positive trend over the years. The return on total capital increased from 10.45% in 2020 to 22.05% in 2024. This indicates that the company has been able to generate a higher return relative to its total capital employed, reflecting improved profitability and efficiency in utilizing its resources. The significant increase in return on total capital from 2023 to 2024, jumping from 20.17% to 22.05%, suggests a notable improvement in the company's operational performance and overall financial health. Overall, the trend in the return on total capital for Edison International demonstrates a positive trajectory and efficient management of its capital resources.
Peer comparison
Dec 31, 2024