EQT Corporation (EQT)
Return on total capital
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 684,737 | 629,130 | 925,799 | 884,267 | 2,323,846 | 3,924,598 | 4,805,783 | 6,109,924 | 2,574,344 | 2,716,634 | -742,060 | -3,214,960 | -1,281,033 | -3,614,859 | -1,809,422 | -902,794 | -994,824 | -2,628,268 | -2,270,687 | -1,755,061 |
| Long-term debt | US$ in thousands | 9,003,380 | 13,393,400 | 4,945,400 | 4,897,770 | 5,502,680 | 5,501,270 | 4,257,640 | 5,058,560 | 5,256,330 | 4,347,330 | 4,601,170 | 26,000 | 4,530,100 | 704,000 | 0 | 300,000 | 4,771,300 | 244,500 | 38,000 | 799,574 |
| Total stockholders’ equity | US$ in thousands | 20,597,600 | 20,334,800 | 15,117,800 | 15,164,200 | 14,773,200 | 14,201,300 | 12,005,800 | 12,112,100 | 11,172,500 | 9,618,960 | 9,061,190 | 8,188,670 | 9,954,760 | 8,248,460 | 8,291,760 | 9,219,640 | 9,255,240 | 8,845,810 | 9,438,830 | 9,633,880 |
| Return on total capital | 2.31% | 1.87% | 4.61% | 4.41% | 11.46% | 19.92% | 29.55% | 35.58% | 15.67% | 19.45% | -5.43% | -39.14% | -8.84% | -40.38% | -21.82% | -9.48% | -7.09% | -28.91% | -23.96% | -16.82% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $684,737K ÷ ($9,003,380K + $20,597,600K)
= 2.31%
The return on total capital for EQT Corporation has shown significant volatility over the past few years. The ratio was negative for the majority of 2020 and 2021, indicating that the company was not generating sufficient returns to cover its capital costs. However, in the latter half of 2022 and throughout 2023, the return on total capital improved substantially, reaching double-digit percentages. This suggests that EQT Corporation was able to enhance its operational efficiency and profitability during this period.
In 2024, the return on total capital remained positive, albeit at a lower rate compared to the previous years. Despite the year-over-year fluctuations, EQT Corporation's ability to generate a positive return on total capital indicates that the company is effectively utilizing its capital to generate profits for its investors. Continued monitoring of this ratio will be essential to track the company's performance and financial health.
Peer comparison
Dec 31, 2024