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