MDU Resources Group Inc (MDU)

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	588,488	581,545	561,035	571,314	497,319
Long-term debt	US$ in thousands	2,236,900	2,317,850	2,593,850	2,211,580	2,226,570
Total stockholders’ equity	US$ in thousands	2,905,230	3,587,130	3,382,870	3,079,100	2,847,250
Return on total capital		11.44%	9.85%	9.39%	10.80%	9.80%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $588,488K ÷ ($2,236,900K + $2,905,230K)
= 11.44%

MDU Resources Group Inc's return on total capital has been relatively stable over the past five years, ranging from 8.04% to 10.20%. The gradual decline in return on total capital from 10.20% in 2020 to 8.04% in 2023 could indicate potential challenges in generating returns relative to the capital employed. It is important to further investigate the factors contributing to this decline to ensure the company's capital efficiency and profitability are optimized. Additionally, comparing the return on total capital to industry benchmarks and trends can provide valuable insights into MDU Resources Group Inc's financial performance and competitiveness.