Quanta Services Inc (PWR)
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 | 1,150,869 | 1,086,209 | 950,732 | 825,188 | 807,795 | 681,763 | 672,556 | 685,738 | 685,773 | 721,374 | 712,608 | 657,104 | 609,996 | 591,482 | 556,386 | 525,050 | 634,406 | 611,390 | 579,084 | 617,870 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,810,480 | 1,517,270 | 1,345,000 |
| Total stockholders’ equity | US$ in thousands | 6,272,240 | 5,987,310 | 5,720,930 | 5,513,420 | 5,383,460 | 5,196,050 | 5,127,020 | 5,137,520 | 5,112,300 | 4,630,710 | 4,486,730 | 4,374,940 | 4,344,180 | 4,151,950 | 3,914,430 | 3,790,490 | 4,050,290 | 3,907,410 | 3,774,920 | 3,723,740 |
| Return on total capital | 18.35% | 18.14% | 16.62% | 14.97% | 15.01% | 13.12% | 13.12% | 13.35% | 13.41% | 15.58% | 15.88% | 15.02% | 14.04% | 14.25% | 14.21% | 13.85% | 15.66% | 10.69% | 10.94% | 12.19% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,150,869K ÷ ($—K + $6,272,240K)
= 18.35%
Quanta Services, Inc. has shown a consistent improvement in its return on total capital over the past eight quarters. The return on total capital increased from 7.64% in Q1 2022 to 10.84% in Q4 2023, indicating a positive trend in the company's ability to generate profits relative to the total capital employed.
This progression demonstrates the company's effective management of its capital resources and operational efficiency over time. The upward trajectory of the return on total capital highlights Quanta Services' increased profitability and potential for generating returns for its investors and creditors.
Overall, the consistent improvement in return on total capital reflects positively on Quanta Services, Inc.'s financial performance and the effectiveness of its capital allocation strategies.
Peer comparison
Dec 31, 2023