Atmos Energy Corporation (ATO)

Return on total capital

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	753,462	743,036	740,179
Long-term debt	US$ in thousands	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	3,529,450	3,529,140	3,528,710
Total stockholders’ equity	US$ in thousands	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	5,750,220	5,642,000	5,508,100
Return on total capital		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%	8.12%	8.10%	8.19%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,211,536K ÷ ($6,963,110K + $11,273,200K)
= 6.64%

Atmos Energy Corp.'s return on total capital has been relatively stable over the past several quarters, ranging from 5.20% to 6.09%. This indicates that the company has been effective in generating returns from its total invested capital. The consistent performance suggests that Atmos Energy Corp. is efficiently utilizing its capital to generate profits.

While the fluctuations in the return on total capital are minimal, the slight variations could be influenced by changes in the company's financial structure, profitability, or operational efficiency. Overall, the gradual increase from 5.20% in Q1 2023 to 6.09% in Q1 2024 demonstrates a positive trend in the company's ability to maximize returns on its capital.

However, it is important for Atmos Energy Corp. to continue monitoring and improving its return on total capital to ensure sustained profitability and long-term financial health. Comparing the return on total capital with industry benchmarks and peer companies can provide additional insights into the company's performance relative to its competitors.