OGE Energy Corporation (OGE)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 775,100 | 693,600 | 707,400 | 681,900 | 694,400 | 683,400 | 702,300 | 670,100 | 951,900 | 941,300 | 912,800 | 947,000 | 675,000 | 676,200 | 621,100 | 612,500 | -178,300 | -190,500 | -152,200 | -159,200 |
| Long-term debt | US$ in thousands | 5,020,900 | 5,020,800 | 4,821,800 | 4,261,900 | 4,340,500 | 4,339,700 | 4,339,000 | 3,994,100 | 3,548,700 | 3,548,200 | 3,547,600 | 4,497,000 | 4,496,400 | 4,495,800 | 4,495,200 | 3,495,000 | 3,494,400 | 3,493,900 | 3,493,400 | 3,195,600 |
| Total stockholders’ equity | US$ in thousands | 4,640,900 | 4,617,100 | 4,477,700 | 4,445,300 | 4,511,600 | 4,540,700 | 4,379,100 | 4,370,000 | 4,413,400 | 4,440,700 | 4,256,900 | 4,262,700 | 4,056,300 | 3,814,900 | 3,640,800 | 3,605,500 | 3,631,800 | 3,660,700 | 3,564,200 | 3,552,700 |
| Return on total capital | 8.02% | 7.20% | 7.61% | 7.83% | 7.84% | 7.70% | 8.06% | 8.01% | 11.96% | 11.78% | 11.70% | 10.81% | 7.89% | 8.14% | 7.63% | 8.63% | -2.50% | -2.66% | -2.16% | -2.36% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $775,100K ÷ ($5,020,900K + $4,640,900K)
= 8.02%
Based on the data provided, OGE Energy Corporation's return on total capital has shown fluctuation over the reporting periods. The return on total capital was negative in the first three quarters of 2020, indicating that the company was not effectively utilizing its total capital to generate profits during that time.
However, starting from the first quarter of 2021, there was a significant improvement in the return on total capital, with double-digit percentages recorded from the first quarter of 2022 onwards. This suggests that OGE Energy Corporation has become more efficient in generating returns from its total capital investment.
The consistent improvement in the return on total capital over the past few years indicates that the company has been able to enhance its operational performance and effectively deploy its capital to achieve higher profitability. It also indicates a positive trend in the company's overall financial health and operational efficiency.
Overall, the increasing trend in return on total capital reflects positively on OGE Energy Corporation's ability to generate profits from its total invested capital and may indicate a sound financial performance and strong management of capital resources.
Peer comparison
Dec 31, 2024