PG&E Corp (PCG)
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 | 4,459,000 | 2,671,000 | 1,837,000 | 1,883,000 | 1,755,000 |
| Long-term debt | US$ in thousands | 53,569,000 | 50,975,000 | 47,742,000 | 38,225,000 | 37,288,000 |
| Total stockholders’ equity | US$ in thousands | 30,149,000 | 25,040,000 | 22,823,000 | 20,971,000 | 21,001,000 |
| Return on total capital | 5.33% | 3.51% | 2.60% | 3.18% | 3.01% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,459,000K ÷ ($53,569,000K + $30,149,000K)
= 5.33%
PG&E Corp's return on total capital has shown a fluctuating trend over the past five years. Starting at 3.01% in December 31, 2020, it increased slightly to 3.18% by December 31, 2021. However, the return dipped to 2.60% by December 31, 2022. The trend reversed in the subsequent years, with the return on total capital rising to 3.51% by December 31, 2023, and significantly improving to 5.33% by December 31, 2024. This improvement in the return on total capital indicates that PG&E Corp has been able to generate higher returns relative to its capital employed, suggesting potentially better operational efficiency or effective capital allocation in recent years. It would be important to monitor this ratio going forward to assess the company's ability to maintain or further enhance its return on total capital.
Peer comparison
Dec 31, 2024