Atmos Energy Corporation (ATO)

Return on total capital

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,389,935	1,374,013	1,339,169	1,211,536	1,136,922	1,079,805	1,062,232	1,012,533	954,719	916,784	888,211	882,504	902,853	927,710	934,703	878,514	831,270	831,352	808,929	782,389
Long-term debt	US$ in thousands	7,337,940	6,892,430	6,762,620	6,963,110	5,402,590	5,760,040	5,879,820	7,856,150	6,918,840	7,340,180	7,949,540	8,653,660	8,086,140	8,101,740	7,828,420	6,294,670	5,597,180	5,563,300	4,863,850	4,927,760
Total stockholders’ equity	US$ in thousands	12,157,700	12,183,100	11,618,600	11,273,200	10,870,100	10,602,400	10,205,200	9,836,270	9,419,090	9,268,170	8,983,230	8,289,540	7,906,890	7,773,760	7,820,920	7,213,160	6,791,200	6,461,470	6,304,420	6,127,780
Return on total capital		7.13%	7.20%	7.29%	6.64%	6.99%	6.60%	6.60%	5.72%	5.84%	5.52%	5.25%	5.21%	5.65%	5.84%	5.97%	6.50%	6.71%	6.91%	7.24%	7.08%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,389,935K ÷ ($7,337,940K + $12,157,700K)
= 7.13%

The return on total capital for Atmos Energy Corporation has shown a fluctuating trend over the past few quarters. It ranged from 5.21% to 7.29% during the period from December 2019 to September 2024. Specifically, the return on total capital was 7.13% in September 2024, which was slightly lower than the previous quarter but still relatively stable.

This indicates that Atmos Energy Corporation has been able to generate positive returns on the total capital employed in its operations. However, the fluctuations in the return on total capital suggest varying efficiency in the utilization of the company's total capital resources to generate profits. It is important for the company to focus on maintaining or improving its return on total capital to ensure sustainable profitability and efficient capital deployment in the future.