Exelon Corporation (EXC)
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 | 4,319,000 | 4,023,000 | 3,315,000 | 2,682,000 | 2,191,000 |
| Long-term debt | US$ in thousands | — | 39,692,000 | 35,272,000 | 30,749,000 | 35,093,000 |
| Total stockholders’ equity | US$ in thousands | 26,921,000 | 25,755,000 | 24,744,000 | 34,393,000 | 32,585,000 |
| Return on total capital | 16.04% | 6.15% | 5.52% | 4.12% | 3.24% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,319,000K ÷ ($—K + $26,921,000K)
= 16.04%
Exelon Corporation's return on total capital has been showing a positive trend over the years, increasing from 3.24% as of December 31, 2020, to 16.04% as of December 31, 2024. This indicates that the company has been effectively utilizing its total capital to generate returns for its stakeholders. The consistent improvement in this ratio suggests that Exelon's efficiency in generating profits from both its equity and debt investments has been on an upward trajectory. The significant jump in 2024 signals a notable increase in profitability, possibly attributed to improved operational performance, strategic investments, or effective cost management. Overall, the increasing trend in return on total capital reflects positively on Exelon's financial performance and the effectiveness of its capital allocation strategies.
Peer comparison
Dec 31, 2024