Southwest Gas Holdings Inc (SWX)
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 | 485,007 | 31,144 | 7,724 | -52,939 | -36,193 | 374,306 | 341,673 | 355,942 | 359,625 | 402,415 | 437,782 | 454,763 | 409,554 | 395,268 | 377,923 | 359,581 | 379,185 | 361,318 | 365,960 | 361,353 |
| Long-term debt | US$ in thousands | 4,609,840 | 5,235,540 | 5,284,840 | 4,577,600 | 4,403,300 | 5,865,590 | 4,588,450 | 4,559,760 | 4,115,680 | 3,573,780 | 2,478,820 | 2,696,570 | 2,732,200 | 2,685,720 | 2,639,320 | 2,310,080 | 2,300,480 | 2,462,120 | 2,373,000 | 2,106,270 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,505,910 | 2,423,710 | 2,419,360 | 2,347,000 |
| Return on total capital | 6.12% | 0.37% | 0.09% | -0.67% | -0.49% | 4.03% | 4.25% | 4.42% | 5.09% | 6.21% | 8.22% | 8.31% | 7.57% | 7.45% | 7.20% | 7.40% | 7.89% | 7.40% | 7.64% | 8.11% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 shown a positive trend over the past eight quarters. The return on total capital has steadily increased from 3.72% in Q1 2022 to 5.71% in Q4 2023, indicating the company's ability to generate higher returns relative to the total capital employed. This improvement suggests effective utilization of both debt and equity financing to generate profits. The consistent growth in return on total capital reflects the company's efficiency in utilizing its resources to create value for its stakeholders.
Peer comparison
Dec 31, 2023