SJW Corporation (SJW)

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	157,087	173,317	155,237	150,233	140,386	121,060	116,965	126,560	123,186	115,328	123,821	123,170	124,150	103,964	78,750	66,083	63,653	74,200	81,537	80,116
Long-term debt	US$ in thousands	1,526,700	1,533,770	1,519,280	1,520,360	1,491,960	1,453,750	1,455,710	1,491,560	1,492,940	1,420,030	1,372,130	1,303,030	1,287,580	1,307,610	1,315,980	1,317,000	1,283,600	511,076	510,859	510,903
Total stockholders’ equity	US$ in thousands	1,233,400	1,220,250	1,182,720	1,152,480	1,110,870	1,049,350	1,029,840	1,028,420	1,034,520	1,000,710	989,679	978,296	917,160	913,061	895,131	883,541	889,984	896,664	893,995	888,293
Return on total capital		5.69%	6.29%	5.75%	5.62%	5.39%	4.84%	4.71%	5.02%	4.87%	4.76%	5.24%	5.40%	5.63%	4.68%	3.56%	3.00%	2.93%	5.27%	5.80%	5.73%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 eight quarters. The return on total capital ranged from a low of 3.66% in Q2 2022 to a high of 5.56% in Q3 2023. This indicates that the company has been able to generate sufficient returns relative to its total capital employed to support its operations and investments. The consistent improvement in the return on total capital suggests that SJW Group has been effectively utilizing its capital to generate profits. Overall, the increasing trend in the return on total capital indicates a positive performance and efficient capital management by SJW Group.