Edison International (EIX)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,948,000 | 3,983,000 | 3,464,000 | 3,227,000 | 2,929,000 | 2,779,000 | 2,199,000 | 1,892,000 | 1,531,000 | 1,432,000 | 1,409,000 | 1,523,000 | 1,694,000 | 1,654,000 | 1,294,000 | 1,239,000 | 1,143,000 | 865,000 | 1,908,000 | 2,037,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 15,565,000 | 15,663,000 | 15,424,000 | 15,172,000 | 15,501,000 | 15,670,000 | 15,793,000 | 15,648,000 | 15,621,000 | 15,392,000 | 15,774,000 | 15,731,000 | 15,888,000 | 14,841,000 | 15,412,000 | 15,322,000 | 14,048,000 | 13,748,000 | 14,253,000 | 13,351,000 |
| Return on total capital | 25.36% | 25.43% | 22.46% | 21.27% | 18.90% | 17.73% | 13.92% | 12.09% | 9.80% | 9.30% | 8.93% | 9.68% | 10.66% | 11.14% | 8.40% | 8.09% | 8.14% | 6.29% | 13.39% | 15.26% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,948,000K ÷ ($—K + $15,565,000K)
= 25.36%
Return on total capital is a key financial ratio that indicates the efficiency with which a company generates profits from its invested capital. For Edison International, the return on total capital has shown fluctuations over the analyzed period.
From March 31, 2020, to September 30, 2020, the return on total capital declined significantly from 15.26% to 6.29%, indicating a decrease in profitability relative to the capital employed. However, from September 30, 2020, to December 31, 2020, the ratio showed a slight improvement to 8.14%.
Throughout the following quarters, the return on total capital remained relatively stable around the 8-11% range, with minor fluctuations. Notably, by March 31, 2024, the ratio saw a significant improvement, reaching 21.27%, and continued to rise steadily to 25.36% by December 31, 2024.
Overall, the upward trend in the return on total capital for Edison International from March 31, 2024, to December 31, 2024, indicates an improvement in the company's ability to generate profits relative to its total invested capital, showcasing potential efficiency and financial performance enhancements.
Peer comparison
Dec 31, 2024