One Gas Inc (OGS)

Return on total capital

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	387,067	381,997	372,584	360,974	345,774	324,598	316,755	313,722	307,050	306,696	307,571	303,020	300,496	296,123	292,626	291,650	292,282	287,237	284,169	276,992
Long-term debt	US$ in thousands	2,160,400	1,862,600	1,876,210	1,875,570	2,661,740	2,429,050	2,283,860	2,283,620	3,683,380	3,683,140	4,082,830	4,082,660	1,582,430	1,582,190	1,581,930	1,286,190	1,286,060	1,285,940	1,285,810	1,285,590
Total stockholders’ equity	US$ in thousands	2,765,880	2,646,750	2,654,830	2,651,480	2,584,430	2,446,270	2,453,600	2,449,390	2,349,530	2,315,100	2,317,270	2,296,600	2,233,310	2,200,020	2,191,990	2,189,010	2,129,390	2,101,880	2,108,460	2,104,780
Return on total capital		7.86%	8.47%	8.22%	7.97%	6.59%	6.66%	6.69%	6.63%	5.09%	5.11%	4.81%	4.75%	7.88%	7.83%	7.75%	8.39%	8.56%	8.48%	8.37%	8.17%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $387,067K ÷ ($2,160,400K + $2,765,880K)
= 7.86%

ONE Gas Inc's return on total capital has been relatively stable and consistent over the past eight quarters, ranging from 4.83% to 6.64%. The company's return on total capital for the most recent quarter (Q4 2023) was 6.49%, indicating that the company generated a return of 6.49% for every dollar of total capital employed. This suggests that ONE Gas Inc has been effectively utilizing its capital to generate profits.

Overall, the trend in return on total capital shows a positive trajectory, with slight fluctuations quarter-to-quarter. This consistency in performance indicates that the company is effectively managing its capital investments to generate returns for its shareholders. It is important for investors to continue monitoring this metric to ensure that ONE Gas Inc's capital allocation strategy remains efficient and profitable.