Eversource Energy (ES)

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	580,425	2,544,250	2,154,600	2,097,340	1,723,300
Long-term debt	US$ in thousands	23,588,600	19,724,000	17,023,600	15,125,900	13,770,800
Total stockholders’ equity	US$ in thousands	14,173,900	15,473,200	14,599,800	14,063,600	12,630,000
Return on total capital		1.54%	7.23%	6.81%	7.19%	6.53%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $580,425K ÷ ($23,588,600K + $14,173,900K)
= 1.54%

Based on the data provided for Eversource Energy's return on total capital over the past five years, the company's performance in generating returns from its total capital has shown a slight fluctuation. The return on total capital decreased from 6.64% in 2019 to 5.90% in 2023. This decline indicates that the company may have faced challenges in effectively utilizing its total capital to generate returns for its stakeholders.

Although there was a decrease in the return on total capital over the years, Eversource Energy has generally maintained a relatively stable performance, with the return ranging between 5.72% and 6.64%. This suggests that the company has been able to efficiently allocate its capital to generate returns, albeit at varying rates.

Overall, the trend in Eversource Energy's return on total capital does not show significant variability, indicating a consistent performance in utilizing its capital effectively to create value for its investors. It is crucial for the company to continue monitoring and enhancing its capital allocation strategies to sustain and improve its return on total capital in the future.