OGE Energy Corporation (OGE)
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 | 775,100 | 694,400 | 649,500 | 544,200 | 522,200 |
| Long-term debt | US$ in thousands | 5,020,900 | 4,340,500 | 3,548,700 | 4,496,400 | 3,494,400 |
| Total stockholders’ equity | US$ in thousands | 4,640,900 | 4,511,600 | 4,413,400 | 4,056,300 | 3,631,800 |
| Return on total capital | 8.02% | 7.84% | 8.16% | 6.36% | 7.33% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $775,100K ÷ ($5,020,900K + $4,640,900K)
= 8.02%
OGE Energy Corporation's return on total capital has shown some fluctuation over the period under consideration. The return on total capital was 7.33% as of December 31, 2020, which decreased slightly to 6.36% by December 31, 2021. However, there was an improvement in the return on total capital to 8.16% by December 31, 2022, indicating potential operational efficiency.
Although there was a slight decline to 7.84% by December 31, 2023, the company managed to achieve a return on total capital of 8.02% by December 31, 2024. This indicates a positive trend in utilizing the total capital effectively to generate returns for the company and its investors.
Overall, the return on total capital for OGE Energy Corporation has shown resilience and improvement over the years, reflecting the company's ability to effectively utilize its capital resources to generate returns. It is essential for the company to continue monitoring and optimizing its capital allocation strategies to maintain and potentially enhance this performance in the future.
Peer comparison
Dec 31, 2024