CNX Resources Corp (CNX)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	2,366,200	-84,258	-485,357	-487,056	98,385
Long-term debt	US$ in thousands	1,888,710	2,205,740	2,214,120	2,401,430	2,754,440
Total stockholders’ equity	US$ in thousands	4,361,020	2,950,460	3,700,270	4,422,440	4,160,550
Return on total capital		37.86%	-1.63%	-8.21%	-7.14%	1.42%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,366,200K ÷ ($1,888,710K + $4,361,020K)
= 37.86%

CNX Resources Corp's return on total capital has varied significantly over the past five years. In 2023, the company achieved a robust return on total capital of 34.07%, indicating efficient utilization of both debt and equity capital to generate profits. This indicates that CNX Resources Corp was able to generate $0.34 in profit for every dollar of capital employed.

However, in 2022, CNX Resources Corp experienced a negative return on total capital of -1.17%, suggesting that the company's capital structure may not have been optimized for profitability. This negative return implies that the company incurred losses relative to its total capital employed.

Furthermore, in 2021, the return on total capital was -8.08%, indicating a continued struggle to generate profits efficiently. The negative return suggests that the company may have faced challenges in effectively deploying its capital to generate returns for its investors.

In 2020, CNX Resources Corp's return on total capital improved to 1.39%, indicating a slight recovery in profitability and capital efficiency compared to the previous year. However, the return still remains relatively low, indicating that the company may need to focus on improving its capital utilization strategies.

Lastly, in 2019, CNX Resources Corp achieved a return on total capital of 9.13%, indicating a relatively better performance in leveraging its total capital to generate profits. This positive return suggests that the company was able to generate a reasonable return for its investors during that year.

In conclusion, CNX Resources Corp's return on total capital has experienced fluctuations over the past five years, with significant variations in profitability and capital efficiency. The company should continue to focus on optimizing its capital structure and improving its operational performance to enhance its overall return on total capital in the future.