Public Service Enterprise Group Inc (PEG)
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 | 2,707,000 | 3,829,000 | 1,630,000 | -518,000 | 2,901,000 |
| Long-term debt | US$ in thousands | 18,964,000 | 17,784,000 | 16,495,000 | 15,219,000 | 14,496,000 |
| Total stockholders’ equity | US$ in thousands | 14,711,000 | 14,098,000 | 12,352,000 | 13,542,000 | 15,123,000 |
| Return on total capital | 8.04% | 12.01% | 5.65% | -1.80% | 9.79% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,707,000K ÷ ($18,964,000K + $14,711,000K)
= 8.04%
Public Service Enterprise Group Inc's return on total capital has exhibited volatility over the past five years. The ratio stood at 9.79% as of December 31, 2020, reflecting a relatively healthy return on the capital employed. However, a sharp decline was observed by December 31, 2021, with a negative return of -1.80%, indicating that the company's capital utilization did not yield positive returns during that period.
By December 31, 2022, the return on total capital improved to 5.65%, suggesting a partial recovery in capital efficiency. A more significant increase was recorded by December 31, 2023, reaching 12.01%, indicating a strong performance in utilizing the total capital investment effectively.
As of December 31, 2024, the return on total capital moderated to 8.04%, showing a slight decline from the previous year but still demonstrating a solid return on capital employed.
Overall, the fluctuating trend in Public Service Enterprise Group Inc's return on total capital highlights the company's varying success in generating returns from the total capital employed in its operations over the specified period.
Peer comparison
Dec 31, 2024