Alliant Energy Corp (LNT)
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 | 1,101,000 | 1,033,000 | 877,000 | 842,000 | 909,000 |
| Long-term debt | US$ in thousands | 8,225,000 | 7,668,000 | 6,735,000 | 6,769,000 | 5,533,000 |
| Total stockholders’ equity | US$ in thousands | 6,777,000 | 6,276,000 | 5,990,000 | 5,688,000 | 5,205,000 |
| Return on total capital | 7.34% | 7.41% | 6.89% | 6.76% | 8.47% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,101,000K ÷ ($8,225,000K + $6,777,000K)
= 7.34%
Alliant Energy Corp.'s return on total capital has exhibited a relatively stable trend over the past five years, with figures ranging from 6.16% to 7.08%. While the return on total capital dipped slightly in 2023 compared to the previous year, the company has generally maintained a consistent performance in generating returns on its total capital employed. This indicates that Alliant Energy Corp. has been effectively utilizing its capital to generate profits and create value for its shareholders. Further analysis would be necessary to understand the underlying drivers of these returns and assess the company's capital efficiency and profitability in greater detail.
Peer comparison
Dec 31, 2023