EQT Corporation (EQT)

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	2,323,850	2,574,340	-1,281,030	-994,824	-1,397,620
Long-term debt	US$ in thousands	5,502,680	5,256,330	4,530,100	4,771,300	5,276,780
Total stockholders’ equity	US$ in thousands	14,773,200	11,172,500	9,954,760	9,255,240	9,803,590
Return on total capital		11.46%	15.67%	-8.84%	-7.09%	-9.27%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,323,850K ÷ ($5,502,680K + $14,773,200K)
= 11.46%

EQT Corp's return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 12.28%, representing a decrease from the previous year's 18.74%. Despite this decrease, the return in 2023 remains positive, indicating the company's ability to generate profits relative to the capital invested.

Looking back, EQT Corp displayed a significant improvement in 2022 compared to the negative returns in 2021 and 2020. The negative returns in 2021 and 2020 suggest that the company faced challenges in profitability and capital efficiency during those periods. However, the return on total capital rebounded to 4.47% in 2019 after the negative performance in the prior years.

Overall, EQT Corp's return on total capital shows variability, with fluctuations in performance from year to year. It is essential for the company to consistently monitor and enhance its capital allocation and operational efficiency to sustain and improve its return on total capital in the long term.