Northwest Natural Gas Co (NWN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 191,142 | 202,796 | 168,680 | 126,723 | 106,937 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,385,370 | 1,283,840 | 1,175,440 | 935,146 | 888,733 |
| Return on total capital | 13.80% | 15.80% | 14.35% | 13.55% | 12.03% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $191,142K ÷ ($—K + $1,385,370K)
= 13.80%
Northwest Natural Gas Co's return on total capital has shown a positive trend over the years, increasing from 12.03% as of December 31, 2020, to 15.80% by December 31, 2023, before slightly declining to 13.80% as of December 31, 2024. This indicates that the company has been effectively utilizing its capital to generate profits, with a notable improvement in profitability between 2020 and 2023. However, the slight decrease in 2024 suggests a potential decrease in efficiency in deploying capital or changes in the company's financial strategy. Overall, the company's return on total capital performance demonstrates a generally positive trajectory but may warrant further investigation into the factors influencing the fluctuations observed in the most recent year.
Peer comparison
Dec 31, 2024