Spire Inc (SR)

Return on total capital

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	510,700	442,000	399,500	446,800	206,500
Long-term debt	US$ in thousands	3,704,400	3,554,000	2,958,500	2,939,100	2,423,700
Total stockholders’ equity	US$ in thousands	3,232,700	2,917,300	2,818,500	2,658,200	2,522,300
Return on total capital		7.36%	6.83%	6.92%	7.98%	4.18%

September 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $510,700K ÷ ($3,704,400K + $3,232,700K)
= 7.36%

Spire Inc's return on total capital has shown a fluctuating trend over the past five years. The return on total capital increased from 4.18% in 2020 to 7.98% in 2021, indicating an improvement in the company's ability to generate profits relative to its total invested capital. However, this trend was not sustained, as the return on total capital decreased in the following years, reaching 6.92% in 2022 and further declining to 6.83% in 2023.

In the most recent period, as of September 30, 2024, the return on total capital increased slightly to 7.36%. Overall, while there have been fluctuations in Spire Inc's return on total capital, the company has shown the ability to generate returns on its total capital investment, albeit with some variability in performance. Further analysis would be necessary to understand the factors driving these fluctuations and to assess the company's overall financial health and efficiency in capital utilization.