Essential Utilities Inc (WTRG)

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	715,143	711,317	700,285	685,710	689,024	664,663	635,140	626,264	629,709	617,605	622,829	612,850	453,405	412,408	422,363	380,065	336,909	248,288	236,263	241,750
Long-term debt	US$ in thousands	6,826,080	6,456,040	6,615,520	6,484,520	6,371,060	6,173,630	6,087,740	5,871,960	5,779,500	5,598,710	5,648,230	5,547,940	5,507,740	5,152,970	5,174,600	4,729,030	2,943,330	2,898,300	2,749,200	2,462,860
Total stockholders’ equity	US$ in thousands	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	3,880,860	3,862,560	3,824,770	1,992,580
Return on total capital		5.62%	5.75%	5.73%	5.71%	5.86%	5.77%	5.56%	5.63%	5.74%	5.76%	5.94%	5.92%	4.45%	4.21%	4.31%	4.07%	4.94%	3.67%	3.59%	5.43%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $715,143K ÷ ($6,826,080K + $5,896,180K)
= 5.62%

Essential Utilities Inc's return on total capital has been relatively consistent, ranging from 5.24% to 5.42% over the past eight quarters. This indicates that the company has been able to generate a stable return on the capital employed in its operations. The slight fluctuations in the ratio suggest that the company's efficiency in generating profits from its total capital has been steady. Overall, Essential Utilities Inc's return on total capital appears to be at a consistent and satisfactory level, reflecting a solid performance in utilizing its capital effectively.