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.
Peer comparison
Dec 31, 2023