National Fuel Gas Company (NFG)

Return on equity (ROE)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	476,866	566,021	363,647	-123,772	304,290
Total stockholders’ equity	US$ in thousands	-55,060	-625,733	1,786,210	1,971,990	2,139,020
ROE		—	—	20.36%	-6.28%	14.23%

September 30, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $476,866K ÷ $-55,060K
= —

The return on equity (ROE) of National Fuel Gas Co. has fluctuated significantly over the past five years. In 2023, the ROE stood at 16.09%, signaling a decrease from the previous year's robust 27.21%. This substantial decline suggests a potential concern in the company's ability to generate profit from shareholders' equity.

The notable peak in ROE in 2022 at 27.21% indicates a period of strong profitability and efficient use of equity during that year. However, this was preceded by a comparatively lower ROE of 20.36% in 2021. The significant variation in ROE over these years may indicate fluctuations in the company's financial performance and its ability to generate returns on the capital invested by shareholders.

The negative ROE of -6.28% in 2020 is a matter of concern, indicating that the company incurred a net loss during that year, which resulted in a negative return on the shareholders' equity. However, it is noteworthy that the company managed to turn this around, as evidenced by the positive ROE values in the subsequent years.

The 2019 ROE of 14.23% indicates a relatively solid performance in that year, showcasing the company's ability to generate a reasonable return on equity investments.

In conclusion, National Fuel Gas Co.'s ROE has exhibited significant fluctuations over the past five years, reflecting varying levels of profitability and efficiency in utilizing shareholders' equity. This underscores the importance of closely monitoring the company's financial performance and management of equity to ensure sustainable and favorable returns for its shareholders.