Kinder Morgan Inc (KMI)
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 | 4,263,000 | 4,065,000 | 2,916,000 | 1,560,000 | 4,873,000 |
| Long-term debt | US$ in thousands | 28,067,000 | 28,403,000 | 30,674,000 | 32,131,000 | 31,915,000 |
| Total stockholders’ equity | US$ in thousands | 30,306,000 | 30,742,000 | 30,823,000 | 31,436,000 | 33,742,000 |
| Return on total capital | 7.30% | 6.87% | 4.74% | 2.45% | 7.42% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,263,000K ÷ ($28,067,000K + $30,306,000K)
= 7.30%
Kinder Morgan Inc's return on total capital has shown a positive trend over the past five years, increasing from 5.91% in 2019 to 8.15% in 2023. This indicates the company's ability to generate earnings from the total capital invested in the business. The consistently improving return on total capital suggests that Kinder Morgan Inc is becoming more efficient in utilizing its capital to generate profits. This trend reflects positively on the company's operational performance and financial management. The steady increase in return on total capital over the years indicates that Kinder Morgan Inc is effectively maximizing returns for its shareholders relative to the amount of capital employed in its operations.
Peer comparison
Dec 31, 2023