Southwest Gas Holdings Inc (SWX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 538,339 | 489,635 | -30,587 | 355,526 | 402,982 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,504,190 | 3,310,040 | 3,058,760 | 2,953,820 | 2,674,950 |
| Return on total capital | 15.36% | 14.79% | -1.00% | 12.04% | 15.07% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $538,339K ÷ ($—K + $3,504,190K)
= 15.36%
Southwest Gas Holdings Inc's return on total capital has exhibited fluctuations over the years based on the provided data. The return on total capital stood at 15.07% as of December 31, 2020, indicating that for every dollar of total capital invested, the company generated a return of 15.07%.
However, there was a decline in the return on total capital to 12.04% as of December 31, 2021, which suggests a decrease in the company's profitability or efficiency in generating returns from its total capital.
The return on total capital significantly dropped to -1.00% as of December 31, 2022, signifying that the company may have incurred losses or struggled to effectively utilize its total capital during that period.
The trend reversed in the subsequent years, with the return on total capital improving to 14.79% as of December 31, 2023, and further increasing to 15.36% as of December 31, 2024. These improvements indicate that Southwest Gas Holdings Inc was able to enhance its profitability and efficiency in utilizing its total capital to generate returns for its shareholders.
Overall, while there were fluctuations in Southwest Gas Holdings Inc's return on total capital, the company showed resilience and the ability to bounce back from periods of lower returns, ending the analysis period with a positive trend in return on total capital.
Peer comparison
Dec 31, 2024