Portland General Electric Co (POR)
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 | 561,000 | 446,000 | 428,000 | 404,000 | 264,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,794,000 | 3,319,000 | 2,779,000 | 2,707,000 | 2,613,000 |
| Return on total capital | 14.79% | 13.44% | 15.40% | 14.92% | 10.10% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $561,000K ÷ ($—K + $3,794,000K)
= 14.79%
Portland General Electric Co's return on total capital has shown a positive trend over the past five years. The return on total capital was 10.10% as of December 31, 2020, which increased to 14.92% by December 31, 2021. Subsequently, it further improved to 15.40% by December 31, 2022, showcasing the company's ability to generate solid returns relative to the capital invested.
However, there was a slight dip in the return on total capital to 13.44% by December 31, 2023, before bouncing back to 14.79% by December 31, 2024. This fluctuation may indicate some variability in the company's efficiency in utilizing its total capital to generate profits during these periods.
Overall, the increasing trend in the return on total capital demonstrates Portland General Electric Co's capacity to effectively deploy its capital resources to generate returns for its stakeholders, though the slight variations in the ratio highlight the need for continuous monitoring and strategic management of capital investments.
Peer comparison
Dec 31, 2024