Southwest Gas Holdings Inc (SWX)
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 | 485,007 | -36,193 | 359,625 | 409,554 | 379,185 |
| Long-term debt | US$ in thousands | 4,609,840 | 4,403,300 | 4,115,680 | 2,732,200 | 2,300,480 |
| Total stockholders’ equity | US$ in thousands | 3,310,040 | 3,058,760 | 2,953,820 | 2,674,950 | 2,505,910 |
| Return on total capital | 6.12% | -0.49% | 5.09% | 7.57% | 7.89% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $485,007K ÷ ($4,609,840K + $3,310,040K)
= 6.12%
Southwest Gas Holdings Inc's return on total capital has varied over the past five years, ranging from a low of 3.99% in 2021 to a high of 7.62% in 2020. In the most recent year, the return on total capital increased to 5.71% from 4.79% in the previous year. This indicates that the company's ability to generate returns from the total capital employed has improved slightly. However, compared to the 2019 and 2020 levels, the return on total capital in 2023 remains relatively lower. Further analysis of the factors influencing this ratio's movement over time could provide insights into the company's operational efficiency and overall financial performance.
Peer comparison
Dec 31, 2023