Evergy Inc. Common Stock (EVRG)

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 1,272,700 1,204,200 1,369,700 1,104,400 1,140,900
Long-term debt US$ in thousands 11,053,300 9,905,700 9,297,900 9,190,900 8,746,700
Total stockholders’ equity US$ in thousands 9,663,100 9,483,700 9,244,400 8,733,400 8,571,900
Return on total capital 6.14% 6.21% 7.39% 6.16% 6.59%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,272,700K ÷ ($11,053,300K + $9,663,100K)
= 6.14%

Evergy Inc's return on total capital has shown a downward trend over the past five years, with values of 6.46% in 2019, 6.05% in 2020, 6.68% in 2021, 6.08% in 2022, and 5.65% in 2023. This indicates that the company's ability to generate profits from the total capital employed has been decreasing. It is important for Evergy Inc to analyze the factors contributing to this decline and implement strategies to improve its return on total capital in order to enhance shareholders' value and ensure long-term sustainability.