Quanta Services Inc (PWR)
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 | 1,150,870 | 807,795 | 685,773 | 609,996 | 634,406 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,272,240 | 5,383,460 | 5,112,300 | 4,344,180 | 4,050,290 |
| Return on total capital | 18.35% | 15.01% | 13.41% | 14.04% | 15.66% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,150,870K ÷ ($—K + $6,272,240K)
= 18.35%
Quanta Services, Inc.'s return on total capital has exhibited some fluctuations over the past five years. The company's return on total capital was 10.84% in 2023, showing an increase from 9.78% in 2022. This signifies an improvement in the company's ability to generate profits relative to the total capital invested.
In the year 2021, Quanta Services, Inc. experienced a return on total capital of 7.62%, representing a slight decrease from the previous year's figure of 11.21% in 2020. However, despite this dip, the company's return on total capital remained generally consistent with historical performance.
Looking back to 2019, Quanta Services, Inc. achieved a return on total capital of 10.75%, which was relatively in line with its 2023 performance. Overall, the company has shown a track record of generating returns on its total capital investment, with fluctuations occurring from year to year.
In conclusion, Quanta Services, Inc. has demonstrated an ability to efficiently utilize its total capital resources to generate profits, as evidenced by its return on total capital performance over the past five years. The recent increase in the return on total capital in 2023 suggests a positive trend in the company's profitability relative to its invested capital.
Peer comparison
Dec 31, 2023