Public Service Enterprise Group Inc (PEG)
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 | 3,829,000 | 1,630,000 | -518,000 | 2,901,000 | 2,519,000 |
| Long-term debt | US$ in thousands | 17,784,000 | 16,495,000 | 15,219,000 | 14,496,000 | 13,743,000 |
| Total stockholders’ equity | US$ in thousands | 14,098,000 | 12,352,000 | 13,542,000 | 15,123,000 | 14,258,000 |
| Return on total capital | 12.01% | 5.65% | -1.80% | 9.79% | 9.00% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,829,000K ÷ ($17,784,000K + $14,098,000K)
= 12.01%
Public Service Enterprise Group Inc.'s return on total capital has experienced fluctuations over the past five years. The company's return on total capital was 10.34% in 2023, showing a significant improvement from the previous year's 4.46%. This uptrend indicates better efficiency in generating profits from the capital employed. However, compared to 2021 and 2020, where the return on total capital was 5.30% and 6.50% respectively, the company's performance in 2023 seems more favorable. 2019 saw the highest return on total capital at 7.53%, but the subsequent years showed some decline before the improvement in 2023. This trend suggests fluctuations in the company's ability to generate returns from its total capital over the analyzed period.
Peer comparison
Dec 31, 2023