Evergy, Inc. (EVRG)
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 | 1,471,100 | 1,277,600 | 1,209,200 | 1,366,700 | 1,100,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,807,800 | 9,663,100 | 9,483,700 | 9,244,400 | 8,733,400 |
| Return on total capital | 15.00% | 13.22% | 12.75% | 14.78% | 12.60% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,471,100K ÷ ($—K + $9,807,800K)
= 15.00%
Evergy, Inc.'s return on total capital has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. The return on total capital increased from 12.60% in 2020 to 15.00% in 2024, indicating an improvement in the company's ability to generate profits from its total capital employed.
The company experienced fluctuations in its return on total capital during this period, with a peak of 14.78% in 2021 and a low of 12.60% in 2020. However, the overall trend suggests that Evergy, Inc. has been able to effectively utilize its total capital to generate higher returns for its shareholders.
The increasing trend in return on total capital indicates efficiency in managing the company's capital structure and generating profitability. It also reflects positively on the company's financial performance and management's effectiveness in utilizing resources to drive profitability.
Peer comparison
Dec 31, 2024