Evergy Inc. Common Stock (EVRG)

Return on total capital

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 1,272,700 1,181,400 1,264,200 1,256,500 1,204,200 1,283,900 1,304,100 1,286,900 1,369,700 1,360,300 1,269,400 1,237,300 1,104,400 1,110,000 1,123,800 1,116,700 1,140,900 1,120,000 1,105,100 960,800
Long-term debt US$ in thousands 11,053,300 9,297,600 10,097,100 10,097,200 9,905,700 9,197,200 9,196,700 9,247,100 9,297,900 9,297,300 9,297,300 9,090,600 9,190,900 — — — 8,746,700 8,749,200 7,122,500 7,125,900
Total stockholders’ equity US$ in thousands 9,663,100 9,749,000 9,534,900 9,489,000 9,483,700 9,609,000 9,307,300 9,237,100 9,244,400 9,317,800 8,986,000 8,806,300 8,733,400 8,802,100 8,547,800 8,529,200 8,571,900 8,619,300 8,883,100 9,422,900
Return on total capital 6.14% 6.20% 6.44% 6.42% 6.21% 6.83% 7.05% 6.96% 7.39% 7.31% 6.94% 6.91% 6.16% 12.61% 13.15% 13.09% 6.59% 6.45% 6.90% 5.81%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 some fluctuations over the past eight quarters. In Q1 2022, the return on total capital was at its highest, at 6.24%, before experiencing a slight decrease in the subsequent quarters. This downward trend continued until Q3 2022, where the return on total capital reached its lowest point at 5.50%. However, Evergy Inc saw a slight improvement in Q4 2022 and Q1 2023, with returns of 6.08% and 6.11%, respectively.

Overall, Evergy Inc's return on total capital seems to be relatively stable, hovering around the 6% mark, indicating that the company is effectively generating returns from its total capital base. However, management may want to further analyze the factors contributing to the fluctuations in order to maintain or improve this metric in the future.