Quanta Services Inc (PWR)
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 | 1,414,720 | 1,156,870 | 838,471 | 631,937 | 609,069 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,317,730 | 6,272,240 | 5,383,460 | 5,112,300 | 4,344,180 |
| Return on total capital | 19.33% | 18.44% | 15.57% | 12.36% | 14.02% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,414,720K ÷ ($—K + $7,317,730K)
= 19.33%
Based on the provided data, Quanta Services Inc's return on total capital has shown a mixed performance over the past five years. In December 2020, the return on total capital was 14.02%, which decreased to 12.36% by December 2021. However, there was a significant improvement in performance in the following years, with returns reaching 15.57% in December 2022, 18.44% in December 2023, and further increasing to 19.33% by December 2024.
This upward trend in return on total capital indicates that Quanta Services Inc has been effectively generating profits from its total capital base over the years, demonstrating the company's ability to efficiently utilize its resources and assets to generate returns for its stakeholders. The increasing trend in return on total capital is a positive indicator of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024