Atmos Energy Corporation (ATO)

Return on total capital

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	1,355,360	1,136,920	954,719	902,853	831,270
Long-term debt	US$ in thousands	7,337,940	5,402,590	6,918,840	8,086,140	5,597,180
Total stockholders’ equity	US$ in thousands	12,157,700	10,870,100	9,419,090	7,906,890	6,791,200
Return on total capital		6.95%	6.99%	5.84%	5.65%	6.71%

September 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,355,360K ÷ ($7,337,940K + $12,157,700K)
= 6.95%

The return on total capital for Atmos Energy Corporation has shown a relatively stable trend over the past five years, ranging from 5.65% in 2021 to 6.99% in 2023. In the most recent year ending on September 30, 2024, the return on total capital was 6.95%. This indicates that the company has been able to generate a consistent return on its total capital employed to generate profits compared to the previous years. Overall, the company's ability to generate returns on its total capital remains steady, reflecting a reasonable efficiency in utilizing its invested capital to generate earnings.