WEC Energy Group Inc (WEC)
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 | 2,164,900 | 2,263,200 | 2,028,600 | 1,787,100 | 1,747,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 12,395,000 | 11,754,600 | 11,407,300 | 10,943,600 | 10,500,100 |
| Return on total capital | 17.47% | 19.25% | 17.78% | 16.33% | 16.64% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,164,900K ÷ ($—K + $12,395,000K)
= 17.47%
Based on the provided data, WEC Energy Group Inc's return on total capital has shown some fluctuations over the five-year period from 2020 to 2024. The return on total capital was 16.64% in December 2020 and slightly decreased to 16.33% by December 2021. However, there was a noticeable increase in return on total capital in the subsequent years, reaching 17.78% by December 2022, 19.25% by December 2023, and then slightly decreasing to 17.47% by December 2024.
Overall, the trend indicates that WEC Energy Group Inc has been effectively utilizing its total capital to generate returns for its investors, with a general upward trajectory in return on total capital over the five-year period. This suggests that the company has been efficiently managing its capital investments and generating value for its stakeholders. It is important for investors and stakeholders to continue monitoring this metric to ensure sustained profitability and efficient capital allocation in the future.
Peer comparison
Dec 31, 2024