FirstEnergy Corporation (FE)
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 | 2,515,000 | 2,529,000 | 2,441,000 | 2,672,000 | 2,165,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 12,455,000 | 10,437,000 | 10,166,000 | 8,675,000 | 7,237,000 |
| Return on total capital | 20.19% | 24.23% | 24.01% | 30.80% | 29.92% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,515,000K ÷ ($—K + $12,455,000K)
= 20.19%
FirstEnergy Corporation's return on total capital has exhibited fluctuations over the years as follows:
- As of December 31, 2020, the return on total capital was at a robust level of 29.92%.
- This performance further improved by the end of 2021, standing at 30.80%, indicating an efficient utilization of capital resources.
- However, by December 31, 2022, the return on total capital decreased to 24.01%, suggesting a potential decline in the company's capital efficiency.
- The trend continued into the following year, with a marginal increase to 24.23% by December 31, 2023, showing some stabilization.
- As of December 31, 2024, the return on total capital saw a notable decrease to 20.19%, raising potential concerns about the company's capital allocation strategies and overall profitability.
In summary, while FirstEnergy Corporation initially demonstrated strong returns on total capital, there have been fluctuations in subsequent years, indicating the need for a closer examination of the company's capital management practices and strategic decision-making to sustain profitability over the long term.
Peer comparison
Dec 31, 2024