OGE Energy Corporation (OGE)

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	694,400	649,500	544,200	522,200	504,300
Long-term debt	US$ in thousands	4,340,500	3,548,700	4,496,400	3,494,400	3,195,200
Total stockholders’ equity	US$ in thousands	4,511,600	4,413,400	4,056,300	3,631,800	4,139,500
Return on total capital		7.84%	8.16%	6.36%	7.33%	6.88%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $694,400K ÷ ($4,340,500K + $4,511,600K)
= 7.84%

The return on total capital for OGE Energy Corp. has shown fluctuations over the past five years. In 2023, the return on total capital was 6.95%, slightly lower than the previous year's figure of 7.25% in 2022. This indicates a decrease in the company's ability to generate returns relative to its total capital employed.

In 2021, OGE Energy Corp. reported a return on total capital of 7.90%, which was higher compared to both 2023 and 2022. This suggests that the company was more efficient in utilizing its capital to generate returns during that period.

In contrast, the return on total capital was negative in 2020 at -2.02%, indicating that the company experienced a loss relative to its total capital employed. However, there was a significant improvement in 2019 with a return on total capital of 8.30%.

Overall, OGE Energy Corp.'s return on total capital has shown variability in recent years, with a mix of positive and negative performance. It is essential for the company to focus on improving efficiencies in its capital utilization to enhance its overall financial performance in the future.