H2O America (HTO)
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 | 174,327 | 157,087 | 140,386 | 123,186 | 124,150 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,366,970 | 1,233,400 | 1,110,870 | 1,034,520 | 917,160 |
| Return on total capital | 12.75% | 12.74% | 12.64% | 11.91% | 13.54% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $174,327K ÷ ($—K + $1,366,970K)
= 12.75%
The return on total capital for H2O America demonstrates a relatively stable performance over the periods assessed, with minor fluctuations observed across the years from 2020 to 2024.
At the end of 2020, the return on total capital stood at 13.54%. This figure declined in 2021 to 11.91%, indicating a decrease in the company's efficiency or profitability relative to its total capital during that period. However, in subsequent years, the return exhibited some recovery, rising slightly to 12.64% by the end of 2022 and marginally increasing again to 12.74% in 2023. The slight increase continued into 2024, with the ratio reaching 12.75%.
Overall, the trend indicates that after a decline in 2021, H2O America managed to stabilize its return on total capital, maintaining a narrow range between approximately 11.91% and 13.54% over the four-year span. This stability may suggest consistent operational efficiency and effective management of capital resources, with no significant fluctuations that would imply major strategic changes or operational disruptions during this period.
Peer comparison
Dec 31, 2024