Eversource Energy (ES)
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 | 2,355,173 | 793,362 | 1,142,102 | 678,856 | 580,407 | 2,362,239 | 2,399,687 | 2,694,580 | 2,590,642 | 2,440,682 | 2,320,657 | 2,269,451 | 2,154,604 | 2,124,844 | 2,188,193 | 2,153,867 | 2,097,322 | 2,082,094 | 2,027,852 | 1,760,808 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 15,039,400 | 26,982,100 | 14,818,700 | 14,543,600 | 14,173,900 | 15,685,900 | 15,554,100 | 15,749,400 | 15,473,200 | 15,279,200 | 15,057,200 | 14,836,700 | 14,599,800 | 14,411,600 | 14,311,900 | 14,233,400 | 14,063,600 | 13,980,000 | 13,805,300 | 13,210,000 |
| Return on total capital | 15.66% | 2.94% | 7.71% | 4.67% | 4.09% | 15.06% | 15.43% | 17.11% | 16.74% | 15.97% | 15.41% | 15.30% | 14.76% | 14.74% | 15.29% | 15.13% | 14.91% | 14.89% | 14.69% | 13.33% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,355,173K ÷ ($—K + $15,039,400K)
= 15.66%
The return on total capital for Eversource Energy has exhibited some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio peaked at 17.11% on March 31, 2023, indicating strong profitability relative to the capital employed. However, there were significant declines in the return on total capital in the following quarters, notably dropping to 4.09% on December 31, 2023, and even lower to 2.94% on September 30, 2024.
After these declines, there was a notable recovery in the return on total capital, reaching 15.66% on December 31, 2024. This resurgence suggests that Eversource Energy may have implemented strategic measures to improve profitability and efficiency in utilizing its total capital. Overall, the return on total capital fluctuated throughout the period observed, showcasing the company's ability to generate returns on the total capital invested in its operations, despite some temporary setbacks.
Peer comparison
Dec 31, 2024