PPL Corporation (PPL)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,590,000 | 1,687,000 | 1,585,000 | 1,544,000 | 1,470,000 | 1,364,000 | 1,454,000 | 2,023,000 | -59,000 | 144,000 | 310,000 | 20,000 | 2,417,000 | 2,018,000 | 2,263,000 | 2,486,000 | 2,550,000 | 3,212,000 | 3,152,000 | 3,273,000 |
| Long-term debt | US$ in thousands | 14,611,000 | 14,484,000 | 14,481,000 | 14,481,000 | 12,889,000 | 12,977,000 | 12,153,000 | 10,668,000 | 10,666,000 | 10,665,000 | 11,095,000 | 13,715,000 | 13,615,000 | 21,243,000 | 21,098,000 | 20,670,000 | 20,721,000 | 21,547,000 | 20,965,000 | 21,114,000 |
| Total stockholders’ equity | US$ in thousands | 13,933,000 | 14,012,000 | 13,959,000 | 14,033,000 | 13,915,000 | 13,881,000 | 13,870,000 | 13,865,000 | 13,723,000 | 14,576,000 | 14,952,000 | 11,554,000 | 13,373,000 | 13,686,000 | 13,044,000 | 13,241,000 | 12,991,000 | 11,902,000 | 11,983,000 | 12,172,000 |
| Return on total capital | 5.57% | 5.92% | 5.57% | 5.41% | 5.48% | 5.08% | 5.59% | 8.25% | -0.24% | 0.57% | 1.19% | 0.08% | 8.96% | 5.78% | 6.63% | 7.33% | 7.56% | 9.60% | 9.57% | 9.83% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,590,000K ÷ ($14,611,000K + $13,933,000K)
= 5.57%
PPL Corp's return on total capital has shown a relatively stable performance over the past eight quarters, ranging from 4.87% to 5.63%. The company's return on total capital has been hovering around the 5% mark, indicating that PPL Corp has been generating a positive return relative to its total capital employed in its operations. While there was a slight decrease in the return on total capital in Q1 and Q2 of 2023 compared to the previous quarters, the performance rebounded in Q3 and Q4 of 2023. Overall, the consistency in the return on total capital suggests that PPL Corp has been efficiently utilizing its capital resources to generate profits.
Peer comparison
Dec 31, 2023