GE Vernova LLC (GEV)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -32,000 | -2,323,000 | -692,000 |
| Long-term debt | US$ in thousands | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,416,000 | 10,650,000 | — |
| Return on total capital | -0.43% | -21.81% | — |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-32,000K ÷ ($—K + $7,416,000K)
= -0.43%
GE Vernova LLC's return on total capital has shown an improvement over the past two years. The return on total capital was -16.37% in 2022, which indicates that the company incurred losses that exceeded its capital. However, there was a noticeable improvement in 2023, with the return on total capital improving to -6.47%. While the company continues to generate a negative return on its total capital, the trend suggests that GE Vernova LLC is moving towards a better financial performance compared to the previous year. It is important for the company to further enhance its profitability and efficiency to achieve a positive return on total capital in the future.
Peer comparison
Dec 31, 2023