{"title":"An Analysis of Utility Capital (In)efficiency","authors":"Nick Melocik","doi":"10.1002/gas.22420","DOIUrl":null,"url":null,"abstract":"<p>Determining the optimal allocation of financial resources to support growth in demand and improve operational efficiency is a strategic and intricate challenge for utilities. Unlike other industries in which return on invested capital (ROIC) and capital turnover ratio are standard metrics of capital efficiency, the utility sector operates under unique regulatory constraints that render these measures less applicable.</p>","PeriodicalId":100259,"journal":{"name":"Climate and Energy","volume":"41 2","pages":"16-21"},"PeriodicalIF":0.0000,"publicationDate":"2024-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Climate and Energy","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/gas.22420","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
Determining the optimal allocation of financial resources to support growth in demand and improve operational efficiency is a strategic and intricate challenge for utilities. Unlike other industries in which return on invested capital (ROIC) and capital turnover ratio are standard metrics of capital efficiency, the utility sector operates under unique regulatory constraints that render these measures less applicable.