GE Vernova LLC (GEV)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 503,000 | 868,000 | 334,000 | 19,000 |
| Long-term debt | US$ in thousands | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,504,000 | 9,067,000 | 8,974,000 | 8,968,000 |
| Return on total capital | 5.29% | 9.57% | 3.72% | 0.21% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $503,000K ÷ ($—K + $9,504,000K)
= 5.29%
Based on the available data, the return on total capital for GE Vernova LLC has shown volatility over the periods presented. In December 31, 2023, the return on total capital was a mere 0.21%, indicating a relatively low return compared to the overall capital employed. However, there was a significant improvement in performance by March 31, 2024, with a return of 3.72%, suggesting a better utilization of the total capital.
The trend continued to improve by June 30, 2024, reaching a return on total capital of 9.57%, signifying a substantial increase in efficiency and profitability. This peak performance might indicate successful investment strategies or operational improvements during that period.
However, by September 30, 2024, the return on total capital dipped to 5.29%, albeit still showing a positive return. This decrease could be due to various factors such as changes in market conditions, business decisions, or operational challenges.
Overall, the fluctuations in the return on total capital reflect the dynamic nature of GE Vernova LLC's financial performance and its ability to generate returns relative to the total capital invested in the business. Periodic monitoring and analysis of this metric can provide insights into the company's efficiency in managing its resources and generating profits.
Peer comparison
Sep 30, 2024