Southwest Gas Holdings Inc (SWX)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 513,540 | 471,075 | 458,161 | 460,815 | 509,947 | 72,041 | 56,462 | 11,930 | -31,152 | 373,751 | 344,190 | 354,478 | 356,120 | 393,686 | 422,757 | 426,162 | 399,582 | 386,233 | 371,467 | 290,777 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,504,190 | 3,455,390 | 3,492,760 | 3,356,240 | 3,310,040 | 3,238,740 | 3,262,830 | 3,296,160 | 3,058,760 | 3,412,920 | 3,458,850 | 3,489,080 | 2,953,820 | 2,909,820 | 2,846,880 | 2,773,720 | 2,674,950 | 2,619,240 | 2,611,300 | 2,547,900 |
| Return on total capital | 14.66% | 13.63% | 13.12% | 13.73% | 15.41% | 2.22% | 1.73% | 0.36% | -1.02% | 10.95% | 9.95% | 10.16% | 12.06% | 13.53% | 14.85% | 15.36% | 14.94% | 14.75% | 14.23% | 11.41% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $513,540K ÷ ($—K + $3,504,190K)
= 14.66%
Southwest Gas Holdings Inc's return on total capital has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The return on total capital started at 11.41% on March 31, 2020, and gradually increased until reaching a peak of 15.41% on December 31, 2023.
However, in the subsequent quarters, there was a drop in the return on total capital, reaching a low of -1.02% on December 31, 2022. This negative return was followed by a gradual recovery, with the return on total capital improving to 14.66% by December 31, 2024.
Overall, Southwest Gas Holdings Inc's return on total capital has displayed variability but generally showed an upward trend, with some periods of decline. The company's ability to generate returns on the total capital employed indicates its efficiency in utilizing capital resources to generate profits for the stakeholders.
Peer comparison
Dec 31, 2024