EQT Corporation (EQT)

Return on total capital

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 685,296 2,323,850 2,574,340 -1,281,030 -994,824
Long-term debt US$ in thousands 9,003,380 5,502,680 5,256,330 4,530,100 4,771,300
Total stockholders’ equity US$ in thousands 20,597,600 14,773,200 11,172,500 9,954,760 9,255,240
Return on total capital 2.32% 11.46% 15.67% -8.84% -7.09%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $685,296K ÷ ($9,003,380K + $20,597,600K)
= 2.32%

EQT Corporation's return on total capital has shown variability over the past five years. The ratio was negative in 2020 and 2021, indicating that the company was not generating sufficient returns to cover its total capital investments. However, there was a significant improvement in 2022, with a return of 15.67%, suggesting better utilization of capital to generate profitability.

In 2023, the return on total capital slightly decreased to 11.46%, indicating a still healthy performance but a slight decline from the previous year. Finally, in 2024, the return on total capital further decreased to 2.32%, signaling a potential slowdown in the company's ability to generate returns relative to its capital base.

Overall, EQT Corporation's return on total capital has been mixed over the past five years, with improvements in some years and declines in others. It will be important for the company to assess its capital allocation strategies and operational efficiency to sustain and enhance its profitability in the future.