Kinder Morgan Inc (KMI)

Return on total capital

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 4,263,000 4,266,000 4,259,000 4,235,000 4,065,000 3,911,000 3,824,000 2,054,000 2,916,000 2,946,000 2,921,000 3,403,000 1,560,000 2,511,000 2,643,000 3,898,000 4,873,000 4,000,000 4,564,000 3,863,000
Long-term debt US$ in thousands 28,067,000 27,871,000 28,632,000 29,346,000 28,403,000 29,107,000 28,552,000 28,759,000 30,674,000 30,002,000 31,077,000 31,061,000 32,131,000 32,660,000 31,441,000 31,405,000 31,915,000 32,111,000 33,005,000 33,328,000
Total stockholders’ equity US$ in thousands 30,306,000 30,258,000 30,569,000 30,757,000 30,742,000 30,756,000 30,545,000 30,618,000 30,823,000 30,552,000 30,711,000 32,187,000 31,436,000 31,559,000 31,753,000 33,106,000 33,742,000 33,633,000 33,638,000 33,612,000
Return on total capital 7.30% 7.34% 7.19% 7.05% 6.87% 6.53% 6.47% 3.46% 4.74% 4.87% 4.73% 5.38% 2.45% 3.91% 4.18% 6.04% 7.42% 6.08% 6.85% 5.77%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,263,000K ÷ ($28,067,000K + $30,306,000K)
= 7.30%

Based on the data provided, Kinder Morgan Inc's return on total capital has shown a generally positive trend over the past eight quarters. The return on total capital has ranged between 6.97% and 8.32% during this period.

The company's return on total capital peaked in Q3 2023 at 8.32% before slightly decreasing to 8.15% in Q4 2023. This indicates that Kinder Morgan Inc has been effectively utilizing its capital to generate returns for its investors. The consistent performance above 7% reflects the company's ability to efficiently allocate its resources to generate profits.

Overall, Kinder Morgan Inc's return on total capital demonstrates stability and efficiency in its capital management, indicating a positive financial performance and effective use of its capital resources.


Peer comparison

Dec 31, 2023