FirstEnergy Corporation (FE)
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 | 2,493,000 | 2,445,000 | 2,742,000 | 2,270,000 | 2,158,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,437,000 | 10,166,000 | 8,675,000 | 7,237,000 | 6,975,000 |
| Return on total capital | 23.89% | 24.05% | 31.61% | 31.37% | 30.94% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,493,000K ÷ ($—K + $10,437,000K)
= 23.89%
Firstenergy Corp.'s return on total capital has exhibited some fluctuations over the past five years. In 2023, the return on total capital was 6.91%, showing a slight improvement compared to 6.53% in 2022. However, it remained below the levels seen in 2019 when it was 8.97%. The return on total capital was lowest in 2021 at 5.68% before recovering in 2022 and 2023. Overall, the company's return on total capital indicates varying efficiency in utilizing both debt and equity capital to generate profits over the years.
Peer comparison
Dec 31, 2023
Company name
Symbol
Return on total capital
FirstEnergy Corporation
FE
23.89%
American Electric Power Company Inc
AEP
5.65%
Black Hills Corporation
BKH
6.49%
CenterPoint Energy Inc
CNP
6.46%
Clearway Energy Inc Class C
CWEN
3.32%
Constellation Energy Corp
CEG
15.81%
Dominion Energy Inc
D
4.87%
DTE Energy Company
DTE
7.70%
Edison International
EIX
5.73%
Entergy Corporation
ETR
7.10%
Eversource Energy
ES
1.54%