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.