Williams Companies Inc (WMB)
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 | 5,420,000 | 3,621,000 | 3,207,000 | 1,462,000 | 2,371,000 |
| Long-term debt | US$ in thousands | 25,713,000 | 22,554,000 | 27,768,000 | 27,043,000 | 25,319,000 |
| Total stockholders’ equity | US$ in thousands | 12,402,000 | 11,485,000 | 11,423,000 | 11,769,000 | 13,363,000 |
| Return on total capital | 14.22% | 10.64% | 8.18% | 3.77% | 6.13% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,420,000K ÷ ($25,713,000K + $12,402,000K)
= 14.22%
Williams Cos Inc has shown a consistent improvement in its return on total capital over the past five years, reaching 12.21% at the end of 2023 compared to 7.77% at the end of 2019. This upward trend indicates the company's ability to generate higher returns relative to its total capital base over time. The steady growth in return on total capital is a positive sign of the company's operational efficiency and effective capital utilization. Investors and stakeholders may view this improvement favorably as it demonstrates the company's increasing profitability and financial strength.
Peer comparison
Dec 31, 2023