PG&E Corp (PCG)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,671,000	1,666,000	1,991,000	1,930,000	1,837,000	2,348,000	2,058,000	2,379,000	2,276,000	2,055,000	1,987,000	-9,000	150,000	-4,613,000	-7,281,000	-9,691,000	-10,128,000	-15,315,000	-12,319,000	-10,144,000
Long-term debt	US$ in thousands	50,975,000	50,343,000	50,230,000	48,508,000	47,742,000	47,854,000	44,174,000	39,123,000	38,225,000	35,959,000	35,955,000	37,801,000	37,288,000	36,311,000	34,920,000	22,176,000	0	—	—	0
Total stockholders’ equity	US$ in thousands	25,040,000	24,132,000	23,763,000	23,334,000	22,823,000	22,234,000	21,767,000	21,392,000	20,971,000	20,475,000	21,547,000	21,127,000	21,001,000	20,812,000	3,549,000	5,507,000	5,136,000	8,739,000	10,342,000	12,877,000
Return on total capital		3.51%	2.24%	2.69%	2.69%	2.60%	3.35%	3.12%	3.93%	3.84%	3.64%	3.46%	-0.02%	0.26%	-8.08%	-18.93%	-35.01%	-197.20%	-175.25%	-119.12%	-78.78%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 a generally positive trend over the past eight quarters. The return on total capital has increased steadily from 3.14% in Q2 2022 to 4.87% in Q4 2023, indicating an improvement in the company's ability to generate profits from its total capital employed.

The consistent upward movement in the return on total capital suggests that PG&E Corp. has been effectively utilizing its capital resources to generate returns for its investors. This can be a positive sign for stakeholders as it demonstrates the company's efficiency in deploying its capital towards income-generating activities.

Overall, the increasing trend in PG&E Corp.'s return on total capital over the past eight quarters indicates a favorable performance in terms of capital management and profitability, which may be reflective of improved financial health and operational efficiency within the company.