SJW Corporation (SJW)
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 | 157,087 | 140,386 | 123,186 | 124,150 | 63,653 |
| Long-term debt | US$ in thousands | 1,526,700 | 1,491,960 | 1,492,940 | 1,287,580 | 1,283,600 |
| Total stockholders’ equity | US$ in thousands | 1,233,400 | 1,110,870 | 1,034,520 | 917,160 | 889,984 |
| Return on total capital | 5.69% | 5.39% | 4.87% | 5.63% | 2.93% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $157,087K ÷ ($1,526,700K + $1,233,400K)
= 5.69%
SJW Group's return on total capital has shown a generally positive trend over the past five years. The return on total capital increased from 3.17% in 2019 to 5.01% in 2023, with fluctuations in between. This indicates an improvement in the company's ability to generate returns from its total capital base.
Although there was a slight dip in 2022, overall, the trend suggests that the company has been effectively utilizing its capital to generate returns for its investors. It is important for investors and analysts to continue monitoring this ratio to assess the company's efficiency in deploying its capital resources effectively.
Peer comparison
Dec 31, 2023