IDACORP Inc (IDA)
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 | 404,948 | 386,201 | 369,160 | 353,543 | 343,836 |
| Long-term debt | US$ in thousands | 2,775,790 | 2,194,140 | 2,000,640 | 2,000,410 | 1,736,660 |
| Total stockholders’ equity | US$ in thousands | 2,907,570 | 2,807,240 | 2,668,440 | 2,559,980 | 2,464,630 |
| Return on total capital | 7.13% | 7.72% | 7.91% | 7.75% | 8.18% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $404,948K ÷ ($2,775,790K + $2,907,570K)
= 7.13%
To analyze Idacorp, Inc.'s return on total capital, we observe a fluctuating trend over the past five years. The return on total capital has decreased from 7.22% in 2019 to 5.80% in 2023. This decline indicates a potential decrease in the company's ability to generate profits relative to its total capital employed.
In 2021, the return on total capital was 6.24%, which was higher than in the following two years, suggesting a relatively strong performance during that period. However, the return decreased further in 2022 to 4.76%, indicating a drop in profitability compared to the previous year.
Overall, Idacorp, Inc.'s return on total capital has been somewhat volatile, with fluctuating levels of profitability relative to the total amount of capital invested in the business. It is essential for the company to closely monitor and assess the factors affecting this ratio to ensure sustainable and optimal performance in the future.
Peer comparison
Dec 31, 2023