SJW Group Common Stock (SJW)
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 | 174,327 | 157,087 | 129,804 | 123,186 | 117,296 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,366,970 | 1,233,400 | 1,110,870 | 1,034,520 | 917,160 |
| Return on total capital | 12.75% | 12.74% | 11.68% | 11.91% | 12.79% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $174,327K ÷ ($—K + $1,366,970K)
= 12.75%
Based on the provided data, the return on total capital for SJW Group Common Stock has shown some variability over the years. It decreased from 12.79% as of December 31, 2020, to 11.91% as of December 31, 2021, and further to 11.68% as of December 31, 2022. However, there was a slight improvement in the return on total capital to 12.74% as of December 31, 2023, and remained relatively stable at 12.75% as of December 31, 2024.
The return on total capital measures the efficiency and profitability of a company in generating returns from both its equity and debt capital. The decreasing trend observed from 2020 to 2022 may indicate challenges or inefficiencies in the company's operations or capital structure during those years. However, the subsequent improvement and stability in the return on total capital in 2023 and 2024 suggest a potential turnaround or better capital utilization by the company.
It is important for stakeholders and investors to monitor the return on total capital closely as it reflects the company's ability to generate profits from all sources of capital employed. Further analysis of the company's financial performance and operational efficiency would provide a more comprehensive understanding of the factors influencing the return on total capital for SJW Group Common Stock.
Peer comparison
Dec 31, 2024