National Fuel Gas Company (NFG)

Return on total capital

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	225,950	773,285	813,007	624,686	12,044
Long-term debt	US$ in thousands	2,188,240	2,384,480	2,083,410	2,628,690	2,629,580
Total stockholders’ equity	US$ in thousands	-15,476	-55,060	-625,733	1,786,210	1,971,990
Return on total capital		10.40%	33.20%	55.77%	14.15%	0.26%

September 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $225,950K ÷ ($2,188,240K + $-15,476K)
= 10.40%

National Fuel Gas Company's return on total capital has fluctuated significantly in recent years. In Sep 30, 2024, the return on total capital was 10.40%, a decrease from the previous year's 33.20% in Sep 30, 2023. The sharp decline indicates a decrease in the company's efficiency in generating profits from its total capital during that period.

In Sep 30, 2022, the return on total capital was notably high at 55.77%, indicating a strong performance in utilizing its total capital to generate profits. This suggests that the company had efficient capital allocation and effective operational management during that fiscal year.

In comparison, the return on total capital in Sep 30, 2021, was 14.15%, indicating a decrease from the previous year, but still a respectable return. It suggests that the company was able to generate reasonable profits relative to its total capital investment during that period.

Furthermore, in Sep 30, 2020, the return on total capital was a mere 0.26%, indicating a very low return compared to other years. This may signal potential issues with capital management or operational inefficiencies during that fiscal year.

Overall, National Fuel Gas Company's return on total capital has varied significantly over the years, highlighting the importance of closely monitoring and analyzing this metric to assess the company's efficiency in utilizing its total capital to generate returns for its shareholders.