Spire Inc (SR)

Return on total capital

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	442,000	399,500	446,800	206,500	323,500
Long-term debt	US$ in thousands	3,554,000	2,958,500	2,939,100	2,423,700	2,082,600
Total stockholders’ equity	US$ in thousands	2,917,300	2,818,500	2,658,200	2,522,300	2,543,000
Return on total capital		6.83%	6.92%	7.98%	4.18%	6.99%

September 30, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $442,000K ÷ ($3,554,000K + $2,917,300K)
= 6.83%

The return on total capital for Spire Inc. has exhibited a fluctuating trend over the past five years. In 2023, the return on total capital stood at 5.51%, which marked a slight decrease from the previous year's 5.74%. However, compared to the 7.11% recorded in 2021, it reflects a decline over the two-year period. Similarly, 2020 saw a return on total capital of 6.28%, while in 2019, it was 5.59%.

This performance indicates variability in the company's ability to generate profits from its total capital over the years, which could be attributed to changes in the company's capital structure, operational efficiency, and profitability levels. Further analysis of the company's financial and operational indicators is necessary to gain deeper insights into the factors influencing these fluctuations in return on total capital.