Sempra Energy (SRE)
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 | 3,710,000 | 4,874,000 | 3,749,000 | 2,615,000 | 5,094,000 |
| Long-term debt | US$ in thousands | — | 27,716,000 | 24,513,000 | 20,099,000 | — |
| Total stockholders’ equity | US$ in thousands | 31,222,000 | 28,675,000 | 27,115,000 | 25,981,000 | 23,373,000 |
| Return on total capital | 11.88% | 8.64% | 7.26% | 5.67% | 21.79% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,710,000K ÷ ($—K + $31,222,000K)
= 11.88%
Sempra Energy's return on total capital has exhibited fluctuations over the years, starting at 21.79% on December 31, 2020, and declining to 5.67% by December 31, 2021. However, there was a gradual improvement in the following years, with the return on total capital reaching 11.88% by December 31, 2024. Overall, while the return on total capital has shown some volatility, the increasing trend observed in the later years indicates a potentially positive performance in utilizing the company's total capital to generate returns.
Peer comparison
Dec 31, 2024