One Gas Inc (OGS)
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 | 387,066 | 345,774 | 307,051 | 300,496 | 292,282 |
| Long-term debt | US$ in thousands | 2,160,400 | 2,661,740 | 3,683,380 | 1,582,430 | 1,286,060 |
| Total stockholders’ equity | US$ in thousands | 2,765,880 | 2,584,430 | 2,349,530 | 2,233,310 | 2,129,390 |
| Return on total capital | 7.86% | 6.59% | 5.09% | 7.88% | 8.56% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $387,066K ÷ ($2,160,400K + $2,765,880K)
= 7.86%
ONE Gas Inc's return on total capital has fluctuated over the past five years. The return on total capital was 6.49% in 2023, an increase from 6.01% in 2022 but lower than the peak of 7.51% in 2019. This indicates that the company is generating a return of 6.49% on its combined debt and equity capital employed in the business.
The fluctuation in return on total capital may be influenced by various factors such as changes in the company's profitability, efficiency in capital utilization, and overall financial performance. It is essential for investors and management to monitor these metrics closely to assess the company's ability to generate value from its investments.
Overall, while ONE Gas Inc's return on total capital has shown variability, maintaining a consistent focus on improving efficiency, profitability, and overall capital management will be key to sustaining long-term financial health and generating satisfactory returns for stakeholders.
Peer comparison
Dec 31, 2023