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

Company name
Symbol
Return on total capital
Southwest Gas Holdings Inc
SWX
6.12%
Chesapeake Utilities Corporation
CPK
6.26%
ONEOK Inc
OKE
10.81%