National Fuel Gas Company (NFG)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	707,886	755,146	807,638	834,239	859,228	814,517	768,995	738,368	706,041	639,924	333,672	263,999	25,380	29,858	287,777	320,207	498,146	511,809	512,531	513,707
Long-term debt	US$ in thousands	2,385,520	2,384,480	2,383,680	2,085,240	2,084,360	2,083,410	2,082,460	2,081,530	2,629,600	2,628,690	2,627,860	2,627,030	2,130,470	2,629,580	2,628,780	2,134,960	2,134,340	2,133,720	2,133,100	2,132,490
Total stockholders’ equity	US$ in thousands	67,381	-55,060	2,935,900	2,878,730	-293,746	-625,733	2,003,950	1,863,660	2,110,200	1,786,210	2,011,110	2,098,970	2,044,620	1,971,990	2,225,860	2,079,960	2,182,140	2,139,020	2,143,750	2,090,510
Return on total capital		28.86%	32.42%	15.18%	16.81%	47.99%	55.88%	18.82%	18.72%	14.90%	14.49%	7.19%	5.59%	0.61%	0.65%	5.93%	7.60%	11.54%	11.98%	11.98%	12.16%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $707,886K ÷ ($2,385,520K + $67,381K)
= 28.86%

National Fuel Gas Co. has shown a consistent trend of return on total capital over the past few quarters, with a gradual decline observed from Q1 2023 to Q1 2024. The return on total capital decreased from 16.06% in Q1 2023 to 12.08% in Q1 2024. Despite this decline, the company has maintained a fairly healthy return on total capital above 12% throughout the periods analyzed, indicating the efficiency with which the company is utilizing its total capital to generate profits. It will be important to monitor future trends to assess if the recent decline is a temporary fluctuation or part of a longer-term pattern.