Southwestern Energy Company (SWN)

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	1,442,000	5,305,000	5,714,000	6,701,000	2,084,000	1,530,000	-804,000	-2,630,000	111,000	-2,351,000	-1,099,000	-1,378,000	-2,611,000	-2,432,000	-1,785,000	-759,000	545,000	758,000	748,000	663,000
Long-term debt	US$ in thousands	3,947,000	4,114,000	4,036,000	3,935,000	4,392,000	4,855,000	5,081,000	4,895,000	5,201,000	4,036,000	2,814,000	2,812,000	3,150,000	2,450,000	2,440,000	2,279,000	2,242,000	2,219,000	2,267,000	2,267,000
Total stockholders’ equity	US$ in thousands	5,888,000	6,537,000	6,489,000	6,254,000	4,324,000	1,414,000	1,043,000	-119,000	2,547,000	-286,000	-18,000	586,000	497,000	384,000	823,000	1,701,000	3,246,000	3,135,000	3,082,000	2,937,000
Return on total capital		14.66%	49.81%	54.29%	65.77%	23.91%	24.41%	-13.13%	-55.07%	1.43%	-62.69%	-39.31%	-40.55%	-71.59%	-85.82%	-54.70%	-19.07%	9.93%	14.16%	13.98%	12.74%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 shown fluctuations over the past eight quarters. The return on total capital ranged from a low of 7.48% in Q4 2023 to a high of 116.56% in Q3 2022. The decreasing trend from Q3 2022 to Q4 2023 may indicate a decline in the company's ability to generate returns on the total capital employed in its operations. However, it is important to understand the reasons behind these fluctuations, such as changes in revenue, expenses, and investments, to assess the overall financial health and performance of the company accurately.