PPL Corporation (PPL)
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 | 1,854,000 | 1,590,000 | 1,470,000 | -59,000 | 2,417,000 |
| Long-term debt | US$ in thousands | 15,952,000 | 14,611,000 | 12,889,000 | 10,666,000 | 13,615,000 |
| Total stockholders’ equity | US$ in thousands | 14,077,000 | 13,933,000 | 13,915,000 | 13,723,000 | 13,373,000 |
| Return on total capital | 6.17% | 5.57% | 5.48% | -0.24% | 8.96% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,854,000K ÷ ($15,952,000K + $14,077,000K)
= 6.17%
The return on total capital for PPL Corporation has shown fluctuation over the years. As of December 31, 2020, the return on total capital stood at 8.96%, indicating a decent performance in utilizing the company's capital to generate profits. However, this metric took a negative turn by December 31, 2021, with a return of -0.24%, suggesting that the company's capital was not effectively deployed to generate returns during that period.
Subsequently, there was an improvement in the return on total capital by December 31, 2022, reaching 5.48%. This uptick indicates a better utilization of capital compared to the previous year. The trend continued to improve slightly by December 31, 2023, with a return on total capital of 5.57%, showing a steady but modest growth in capital efficiency.
By the end of December 31, 2024, PPL Corporation's return on total capital further increased to 6.17%, reflecting a positive trajectory in capital utilization and profitability. Overall, the company has shown varying levels of performance in generating returns from its total capital over the analyzed period, with a recent improvement in efficiency and profitability.
Peer comparison
Dec 31, 2024