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.
Peer comparison
Dec 31, 2023