Vistra Energy Corp (VST)
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 | 2,741,000 | 2,445,000 | 2,606,000 | 244,000 | -1,209,000 | -124,000 | -937,000 | 782,000 | -1,348,000 | -2,238,000 | -1,657,000 | -1,338,000 | 1,534,000 | 1,822,000 | 1,461,000 | 1,864,000 | 2,015,000 | 1,703,000 | 1,999,000 | 1,401,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,307,000 | 5,506,000 | 5,359,000 | 5,201,000 | 4,902,000 | 5,582,000 | 5,392,000 | 7,300,000 | 8,291,000 | 6,036,000 | 6,076,000 | 6,100,000 | 8,371,000 | 8,444,000 | 8,056,000 | 7,936,000 | 7,959,000 | 7,792,000 | 7,904,000 | 7,804,000 |
| Return on total capital | 51.65% | 44.41% | 48.63% | 4.69% | -24.66% | -2.22% | -17.38% | 10.71% | -16.26% | -37.08% | -27.27% | -21.93% | 18.33% | 21.58% | 18.14% | 23.49% | 25.32% | 21.86% | 25.29% | 17.95% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,741,000K ÷ ($—K + $5,307,000K)
= 51.65%
Vistra Corp's return on total capital has shown varying trends over the past eight quarters. In Q4 2023, the return on total capital was 13.75%, which was a slight increase from 13.43% in the previous quarter (Q3 2023). This indicates that the company was able to generate a decent return on the total capital employed in the business during the latest quarter.
The return on total capital reached a peak of 15.23% in Q2 2023, reflecting a period of relatively strong performance. However, this was followed by a significant drop to 2.13% in Q1 2023, which may raise concerns about the company's efficiency in utilizing its total capital effectively during that quarter.
Looking further back, in Q4 2022, Vistra Corp experienced a negative return on total capital of -6.21%, indicating that the company's capital utilization was inefficient during that period. This negative trend continued in the preceding quarters, reaching a low of -4.99% in Q2 2022. The company then managed to improve its performance and achieve a positive return on total capital of 4.75% in Q1 2022.
Overall, Vistra Corp's return on total capital has shown volatility and inconsistency over the past two years, with some quarters demonstrating strong performance while others falling below expectations. It is essential for the company to focus on improving its capital utilization efficiency to ensure sustainable and profitable operations in the future.
Peer comparison
Dec 31, 2023