Nextera Energy Inc (NEE)
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 | 4,335,000 | 10,612,000 | 4,081,000 | 3,889,000 | 3,912,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 50,101,000 | 47,468,000 | 39,229,000 | 37,202,000 | 36,513,000 |
| Return on total capital | 8.65% | 22.36% | 10.40% | 10.45% | 10.71% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,335,000K ÷ ($—K + $50,101,000K)
= 8.65%
Nextera Energy Inc's return on total capital has exhibited fluctuations over the five-year period analyzed. The return on total capital stood at 10.71% as of December 31, 2020, decreased slightly to 10.45% by December 31, 2021, and further declined to 10.40% by the end of 2022. However, there was a significant improvement in the return on total capital to 22.36% by December 31, 2023, suggesting a substantial increase in the profitability and efficiency of capital utilization during that year.
Nonetheless, by the end of December 31, 2024, the return on total capital dropped to 8.65%, indicating a decrease in the company's ability to generate returns from the total capital employed. It would be important for Nextera Energy Inc to closely examine the factors contributing to these fluctuations to ensure sustainable and consistent returns on its total capital in the future.
Peer comparison
Dec 31, 2024