Xcel Energy Inc (XEL)
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 | 2,789,000 | 2,629,000 | 2,459,000 | 2,205,000 | 2,108,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 19,522,000 | 17,616,000 | 16,675,000 | 15,612,000 | 14,575,000 |
| Return on total capital | 14.29% | 14.92% | 14.75% | 14.12% | 14.46% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,789,000K ÷ ($—K + $19,522,000K)
= 14.29%
Looking at the return on total capital for Xcel Energy Inc over the past five years, the trend shows a relatively stable performance. The return on total capital has ranged from 14.12% to 14.92%, with a slight increase in 2024 compared to 2020. This indicates that the company has been able to efficiently generate returns from its total capital investments.
Consistently maintaining a return on total capital above 14% reflects positively on Xcel Energy's ability to utilize its capital effectively to generate profits. It suggests that the company has been managing its investments and operations efficiently, resulting in satisfactory returns for its shareholders and investors.
Overall, the stable and relatively high return on total capital for Xcel Energy Inc demonstrates a solid financial performance and efficient capital management over the analyzed period.
Peer comparison
Dec 31, 2024