PG&E Corp (PCG)
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 | 2,671,000 | 1,837,000 | 1,883,000 | 1,755,000 | -10,094,000 |
| Long-term debt | US$ in thousands | 50,975,000 | 47,742,000 | 38,225,000 | 37,288,000 | 0 |
| Total stockholders’ equity | US$ in thousands | 25,040,000 | 22,823,000 | 20,971,000 | 21,001,000 | 5,136,000 |
| Return on total capital | 3.51% | 2.60% | 3.18% | 3.01% | -196.53% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,671,000K ÷ ($50,975,000K + $25,040,000K)
= 3.51%
PG&E Corp.'s return on total capital has shown fluctuations over the past five years. The return on total capital was 4.87% as of December 31, 2023, which represents an improvement compared to the prior year. However, it is worth noting that the return on total capital has not returned to the high levels seen in 2019, where it was 20.21%. This suggests that the company may be facing challenges in generating returns on its overall capital base. Further analysis of the company's financial performance and capital allocation strategies would be necessary to determine the factors influencing the return on total capital.
Peer comparison
Dec 31, 2023