PPL Corporation (PPL)
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 | 1,854,000 | 1,748,000 | 1,741,000 | 1,629,000 | 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 |
| Long-term debt | US$ in thousands | 15,952,000 | 16,499,000 | 15,756,000 | 15,753,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 14,077,000 | 14,092,000 | 14,065,000 | 14,058,000 | 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 |
| Return on total capital | 6.17% | 5.71% | 5.84% | 5.46% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 exhibited fluctuations over the reported periods. The return on total capital decreased steadily from March 2021 to December 2021, reaching negative values during this period, indicating a decline in the company's ability to generate profits in relation to its total capital employed.
However, starting from March 2022, there has been a consistent improvement in the return on total capital, reaching a level of 6.17% as of December 31, 2024. This positive trend suggests that the company's profitability in relation to its total capital has improved, reflecting a potentially more efficient use of capital and enhanced financial performance.
It is essential for stakeholders to monitor this metric closely to ensure sustained profitability and effective capital utilization by PPL Corporation in the future.
Peer comparison
Dec 31, 2024