Portland General Electric Co (POR)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 561,000 | 584,000 | 516,000 | 583,878 | 650,836 | 726,781 | 849,754 | 865,790 | 830,772 | 835,756 | 807,729 | 757,759 | 790,764 | 806,780 | 716,781 | 729,786 | 728,794 | 711,803 | 810,811 | 790,821 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,794,000 | 3,630,000 | 3,484,000 | 3,459,000 | 3,319,000 | 3,295,000 | 3,200,000 | 3,112,000 | 2,779,000 | 2,760,000 | 2,738,000 | 2,709,000 | 2,707,000 | 2,675,000 | 2,661,000 | 2,675,000 | 2,613,000 | 2,595,000 | 2,646,000 | 2,638,000 |
| Return on total capital | 14.79% | 16.09% | 14.81% | 16.88% | 19.61% | 22.06% | 26.55% | 27.82% | 29.89% | 30.28% | 29.50% | 27.97% | 29.21% | 30.16% | 26.94% | 27.28% | 27.89% | 27.43% | 30.64% | 29.98% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $561,000K ÷ ($—K + $3,794,000K)
= 14.79%
Portland General Electric Co's return on total capital has exhibited some fluctuation over the period from March 31, 2020, to December 31, 2024. The ratio started at a strong level of 29.98% in March 2020, showing efficient utilization of both debt and equity to generate returns. This trend continued to improve, reaching a peak of 30.64% in June 2020. However, there has been a subsequent decline in the ratio, with fluctuations seen over the following quarters.
The ratio dropped to 26.55% by June 2023, indicating a decrease in the company's ability to generate returns on its total capital. This downward trend continued, with the ratio hitting a low of 14.79% by December 31, 2024. Such lower returns suggest potential challenges in effectively deploying capital to generate profits or may indicate increased financial leverage impacting overall profitability.
Overall, the fluctuation in Portland General Electric Co's return on total capital highlights the need for further analysis into the company's operational efficiency, capital structure, and profitability drivers to understand the underlying factors contributing to the observed performance.
Peer comparison
Dec 31, 2024