Kinder Morgan Inc (KMI)
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 | 4,384,000 | 4,263,000 | 4,065,000 | 2,916,000 | 1,560,000 |
| Long-term debt | US$ in thousands | 29,881,000 | 28,067,000 | 28,403,000 | 30,674,000 | 32,131,000 |
| Total stockholders’ equity | US$ in thousands | 30,531,000 | 30,306,000 | 30,742,000 | 30,823,000 | 31,436,000 |
| Return on total capital | 7.26% | 7.30% | 6.87% | 4.74% | 2.45% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,384,000K ÷ ($29,881,000K + $30,531,000K)
= 7.26%
Kinder Morgan Inc's return on total capital has shown a positive trend over the years, increasing from 2.45% as of December 31, 2020, to 7.26% as of December 31, 2024. This improvement indicates the company's enhanced ability to generate profits from its invested capital. The steady growth in return on total capital reflects effective capital allocation and operational efficiency within the organization. Investors and stakeholders may view this upward trajectory as a positive indicator of Kinder Morgan's financial health and management's ability to generate returns on the total capital employed in its operations.
Peer comparison
Dec 31, 2024