Southwestern Energy Company (SWN)
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 | 1,442,000 | 2,084,000 | 111,000 | -2,611,000 | 545,000 |
| Long-term debt | US$ in thousands | 3,947,000 | 4,392,000 | 5,201,000 | 3,150,000 | 2,242,000 |
| Total stockholders’ equity | US$ in thousands | 5,888,000 | 4,324,000 | 2,547,000 | 497,000 | 3,246,000 |
| Return on total capital | 14.66% | 23.91% | 1.43% | -71.59% | 9.93% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,442,000K ÷ ($3,947,000K + $5,888,000K)
= 14.66%
Southwestern Energy Company's return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 7.48%, showing a significant decrease compared to the previous year where it was 84.68%. The company achieved a return on total capital of 34.25% in 2021, significantly higher than the returns in 2020 (0.44%) and 2019 (5.45%).
The significant variability in return on total capital over the years may indicate fluctuations in the company's efficiency in generating profits from its invested capital. It is important for investors and stakeholders to monitor this metric closely to assess the company's financial performance and management of its capital resources.
Peer comparison
Dec 31, 2023