Essential Utilities Inc (WTRG)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	778,424	720,800	696,803	702,447	704,030	700,204	690,732	675,269	674,976	647,479	622,251	613,026	615,093	601,691	603,509	595,346	459,217	411,259	413,564	382,718
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	6,198,810	6,180,930	6,163,230	6,081,130	5,896,180	5,922,560	5,614,700	5,515,940	5,377,390	5,343,100	5,342,030	5,255,100	5,184,450	5,127,860	4,836,820	4,810,340	4,683,880	4,635,750	4,635,530	4,613,160
Return on total capital		12.56%	11.66%	11.31%	11.55%	11.94%	11.82%	12.30%	12.24%	12.55%	12.12%	11.65%	11.67%	11.86%	11.73%	12.48%	12.38%	9.80%	8.87%	8.92%	8.30%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $778,424K ÷ ($—K + $6,198,810K)
= 12.56%

Essential Utilities Inc's return on total capital has shown a fluctuating trend over the past few years, starting at 8.30% as of March 31, 2020, and reaching a peak of 12.56% by December 31, 2024. The company demonstrated a gradual improvement in its return on total capital from 2020 to 2022, with a notable spike in performance during the first half of 2021 when the return on capital exceeded 12%. However, the return on total capital slightly declined in the subsequent periods, stabilizing around the mid-11% range in 2023. Overall, Essential Utilities Inc's return on total capital indicates a positive trend with periods of growth and some fluctuations, reflecting the company's ability to generate returns relative to the total capital employed in its operations.