Nextera Energy Inc (NEE)
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 | 10,237,000 | 4,081,000 | 2,913,000 | 5,116,000 | 5,353,000 |
| Long-term debt | US$ in thousands | 61,405,000 | 55,256,000 | 50,960,000 | 41,944,000 | 37,543,000 |
| Total stockholders’ equity | US$ in thousands | 47,468,000 | 39,229,000 | 37,202,000 | 36,513,000 | 37,005,000 |
| Return on total capital | 9.40% | 4.32% | 3.30% | 6.52% | 7.18% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $10,237,000K ÷ ($61,405,000K + $47,468,000K)
= 9.40%
NextEra Energy Inc's return on total capital has fluctuated over the past five years. In 2023, the company achieved a return on total capital of 7.61%, showing an improvement from the previous year's figure of 3.61%. This increase indicates that the company was able to generate more returns relative to its total capital invested in the most recent year.
It is worth noting that NextEra Energy Inc's return on total capital in 2023 is higher than the figures from 2021 and 2020, which were 3.81% and 4.03%, respectively. However, it is lower than the return recorded in 2019, which stood at 6.43%.
Overall, the upward trend in the return on total capital from 2022 to 2023 suggests that NextEra Energy Inc may have improved its operational efficiency or made strategic investments that generated higher returns. Monitoring this ratio over time can provide insights into the company's performance in utilizing its capital effectively to generate returns for its investors.
Peer comparison
Dec 31, 2023