Williams Companies Inc (WMB)
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 | 3,339,000 | 5,420,000 | 3,621,000 | 3,207,000 | 1,462,000 |
| Long-term debt | US$ in thousands | 25,830,000 | 25,713,000 | 22,554,000 | 27,768,000 | 27,043,000 |
| Total stockholders’ equity | US$ in thousands | 12,436,000 | 12,402,000 | 11,485,000 | 11,423,000 | 11,769,000 |
| Return on total capital | 8.73% | 14.22% | 10.64% | 8.18% | 3.77% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,339,000K ÷ ($25,830,000K + $12,436,000K)
= 8.73%
Williams Companies Inc's return on total capital has shown a positive trend over the years, increasing from 3.77% as of December 31, 2020, to 8.18% as of December 31, 2021, and further rising to 10.64% by December 31, 2022. The trend continued to be favorable, reaching 14.22% by December 31, 2023. However, there was a slight decrease in the return on total capital to 8.73% as of December 31, 2024. Overall, the company has been able to improve its utilization of total capital to generate returns for its investors, although there was a minor dip in the latest period analyzed. Further examination of the factors influencing this ratio may provide insights into the company's performance and future prospects.
Peer comparison
Dec 31, 2024