Northwest Natural Gas Co (NWN)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	184,941	167,477	163,117	148,351	143,474
Long-term debt	US$ in thousands	1,425,440	1,246,170	1,044,590	860,081	805,955
Total stockholders’ equity	US$ in thousands	1,283,840	1,175,440	935,146	888,733	865,999
Return on total capital		6.83%	6.92%	8.24%	8.48%	8.58%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $184,941K ÷ ($1,425,440K + $1,283,840K)
= 6.83%

Northwest Natural Holding Co's return on total capital has seen marginal fluctuations over the past five years. The return on total capital was 6.27% as of December 31, 2023, compared to 6.04% in 2022, showing a slight improvement. However, this figure is lower than the 6.88% recorded in 2021 and the 6.90% in 2020. The highest return on total capital was reported in 2019 at 7.57%.

Overall, the trend in return on total capital shows some variability with a general downward trend in recent years. This metric indicates the company's efficiency in generating returns from both its equity and debt capital. The slight decrease in return on total capital over the years may suggest a need for the company to enhance its operational efficiency and profitability to maximize returns for its investors and stakeholders.