Atmos Energy Corporation (ATO)

Return on total capital

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	1,136,920	954,719	902,853	831,270	753,462
Long-term debt	US$ in thousands	5,402,590	6,918,840	8,086,140	5,597,180	3,529,450
Total stockholders’ equity	US$ in thousands	10,870,100	9,419,090	7,906,890	6,791,200	5,750,220
Return on total capital		6.99%	5.84%	5.65%	6.71%	8.12%

September 30, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,136,920K ÷ ($5,402,590K + $10,870,100K)
= 6.99%

The return on total capital for Atmos Energy Corp. has shown a fluctuating trend over the past five years, with figures recorded as 6.01% in 2023, 5.24% in 2022, 5.94% in 2021, 7.28% in 2020, and 7.66% in 2019. These values indicate the company's ability to generate earnings from both its equity and debt capital. The declining trend from 2019 to 2022 is noteworthy, suggesting a potential decrease in the efficiency of capital utilization during this period. However, the slight increase in 2023 compared to 2022 may signify an improvement in the company's capital deployment effectiveness. Further analysis should be conducted to identify the factors contributing to these changes and their implications for the company's overall financial performance and strategic direction.