Portland General Electric Co (POR)
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 | 396,000 | 397,000 | 378,000 | 269,000 | 353,000 |
| Long-term debt | US$ in thousands | 3,905,000 | 3,386,000 | 3,285,000 | 2,886,000 | 2,597,000 |
| Total stockholders’ equity | US$ in thousands | 3,319,000 | 2,779,000 | 2,707,000 | 2,613,000 | 2,591,000 |
| Return on total capital | 5.48% | 6.44% | 6.31% | 4.89% | 6.80% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $396,000K ÷ ($3,905,000K + $3,319,000K)
= 5.48%
Portland General Electric Co's return on total capital has fluctuated over the past five years, ranging from 4.52% in 2020 to 6.61% in 2019. The company experienced a decrease in its return on total capital in 2023 compared to the previous year, with a rate of 5.10%. This decline suggests that the company may be facing challenges in generating profits relative to its total capital employed. It is important for Portland General Electric Co to closely monitor its return on total capital to ensure efficient and effective utilization of its capital resources.
Peer comparison
Dec 31, 2023