Vistra Energy Corp (VST)
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 | 2,741,000 | -1,209,000 | -1,348,000 | 1,532,000 | 2,015,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,307,000 | 4,902,000 | 8,291,000 | 8,371,000 | 7,959,000 |
| Return on total capital | 51.65% | -24.66% | -16.26% | 18.30% | 25.32% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,741,000K ÷ ($—K + $5,307,000K)
= 51.65%
The return on total capital for Vistra Corp has shown significant fluctuations over the past five years. In 2023, the return on total capital was positive at 13.75%, indicating efficient utilization of both equity and debt in generating profits. This represents a strong performance compared to negative returns in 2021 and 2022, where the company experienced -7.50% and -6.21% returns on total capital respectively.
The positive return in 2023 suggests improvements in the company's operational efficiency and profitability. However, it is essential to consider the trend in conjunction with other financial metrics to assess the sustainability of this performance over the long term. The return on total capital in 2020 and 2019 was 10.49% and 10.71%, respectively, indicating relatively stable returns in those years.
Overall, Vistra Corp's recent positive return on total capital reflects a potential turnaround in the company's financial performance, but continued monitoring of its operational and financial strategies is recommended to ensure sustained profitability and value creation for its stakeholders.
Peer comparison
Dec 31, 2023