MDU Resources Group Inc (MDU)
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 | 307,009 | 654,110 | 380,637 | 560,044 | 571,045 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,690,570 | 2,905,230 | 3,587,130 | 3,382,870 | 3,079,100 |
| Return on total capital | 11.41% | 22.51% | 10.61% | 16.56% | 18.55% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $307,009K ÷ ($—K + $2,690,570K)
= 11.41%
The return on total capital for MDU Resources Group Inc has shown some fluctuations over the years as follows:
- As of December 31, 2020, the return on total capital was 18.55%, indicating a strong performance in generating profits relative to its total capital employed.
- By December 31, 2021, the return on total capital slightly decreased to 16.56%, which may suggest a moderation in the company's ability to generate returns on its total capital.
- The return on total capital saw a more significant decline by December 31, 2022, dropping to 10.61%. This decrease may raise concerns about the company's capital utilization efficiency.
- However, there was a notable improvement by December 31, 2023, where the return on total capital increased to 22.51%, indicating a rebound in the company's ability to generate profits on its total capital.
- As of December 31, 2024, the return on total capital decreased again to 11.41%, signaling a potential challenge in sustaining consistent returns on the capital deployed.
Overall, the fluctuating trend in MDU Resources Group Inc's return on total capital highlights the importance of closely monitoring the company's capital efficiency and profitability to ensure sustained financial performance.
Peer comparison
Dec 31, 2024