PPL Corporation (PPL)
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 | 1,590,000 | 1,470,000 | -59,000 | 2,417,000 | 2,550,000 |
| Long-term debt | US$ in thousands | 14,611,000 | 12,889,000 | 10,666,000 | 13,615,000 | 20,721,000 |
| Total stockholders’ equity | US$ in thousands | 13,933,000 | 13,915,000 | 13,723,000 | 13,373,000 | 12,991,000 |
| Return on total capital | 5.57% | 5.48% | -0.24% | 8.96% | 7.56% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,590,000K ÷ ($14,611,000K + $13,933,000K)
= 5.57%
The return on total capital for PPL Corp has shown some fluctuation over the past five years. In 2023, it stood at 5.52%, slightly higher than the 4.88% recorded in 2022 but lower than the 5.71% in 2021. Furthermore, the return on total capital has declined from 7.35% in 2020 and 7.88% in 2019. This trend indicates that PPL Corp may be facing challenges in generating returns from its total capital base efficiently in recent years. It is essential for the company to investigate the reasons behind this decline and take necessary steps to improve its return on total capital in the future.
Peer comparison
Dec 31, 2023