National Fuel Gas Company (NFG)

Return on total capital

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	209,723	531,596	737,132	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
Long-term debt	US$ in thousands	2,188,240	2,637,120	2,386,570	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
Total stockholders’ equity	US$ in thousands	-15,476	5,050	75,340	67,381	-55,060	-49,384	-54,864	-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
Return on total capital		9.65%	20.12%	29.94%	28.86%	32.42%	34.60%	41.09%	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%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $209,723K ÷ ($2,188,240K + $-15,476K)
= 9.65%

National Fuel Gas Company's return on total capital has fluctuated over the periods in question. The return on total capital ranged from a low of 0.61% in December 2020 to a high of 55.88% in September 2022. The company's return on total capital has shown a general upward trend from the end of 2020 to mid-2022, peaking in September 2022. However, there was a decrease in the return on total capital in the subsequent quarters.

The return on total capital decreased from 55.88% in September 2022 to 9.65% in September 2024. Despite the fluctuations, the return on total capital generally remained positive throughout the periods, indicating that the company has been effectively generating returns from its total capital investments.

It is important for stakeholders to closely monitor these trends to assess the company's efficiency in generating returns from its total capital base and to evaluate the overall financial health and performance of National Fuel Gas Company.