NiSource Inc (NI)
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 | 1,455,500 | 1,343,400 | 1,330,300 | 1,043,800 | 336,000 |
| Long-term debt | US$ in thousands | 12,505,200 | 10,370,900 | 8,479,400 | 10,415,700 | 11,034,200 |
| Total stockholders’ equity | US$ in thousands | 8,684,200 | 8,269,600 | 7,575,400 | 6,947,300 | 5,752,200 |
| Return on total capital | 6.87% | 7.21% | 8.29% | 6.01% | 2.00% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,455,500K ÷ ($12,505,200K + $8,684,200K)
= 6.87%
NiSource Inc's return on total capital has shown an increasing trend over the years, from 2.00% as of December 31, 2020, to 6.87% as of December 31, 2024. This indicates that the company has been able to generate a higher return on the capital invested in its operations. The company's return on total capital reached its peak at 8.29% as of December 31, 2022, showing a strong performance during that period. However, there was a slight decrease in the return on total capital in 2023 and 2024 compared to the peak year. Overall, NiSource Inc's ability to generate returns on its total capital has shown positive improvement over the years, although some fluctuations were observed in the later years.
Peer comparison
Dec 31, 2024