Eversource Energy (ES)
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 | 2,355,170 | 580,404 | 2,544,240 | 2,152,900 | 2,094,820 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 21,760,700 | 14,173,900 | 15,473,200 | 14,599,800 | 14,063,600 |
| Return on total capital | 10.82% | 4.09% | 16.44% | 14.75% | 14.90% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,355,170K ÷ ($—K + $21,760,700K)
= 10.82%
Based on the data provided, Eversource Energy's return on total capital has displayed varying trends over the past five years.
In December 2020, the return on total capital was 14.90%, which slightly decreased to 14.75% by December 2021. However, there was a notable increase in December 2022, with the return on total capital reaching 16.44%.
The trend shifted significantly in December 2023, with the return on total capital dropping substantially to 4.09%. This sharp decline may indicate challenges or inefficiencies in capital utilization during that period.
By December 2024, there was a partial recovery as the return on total capital improved to 10.82%, though it remained below the levels seen in the earlier years.
Overall, the trend in Eversource Energy's return on total capital reflects some volatility and fluctuations. It would be important to further analyze the underlying factors contributing to these changes to understand the company's capital efficiency and effectiveness in generating returns for its stakeholders.
Peer comparison
Dec 31, 2024