An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

EQT Corp., adjustments to financial statements

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported)	21,607,388)	18,113,469)	18,809,227)	20,721,344)	29,522,604)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	100,755)	195,930)
Total assets (adjusted)	21,607,388)	18,113,469)	18,809,227)	20,822,099)	29,718,534)
Adjustment to Total Debt
Total debt (as reported)	5,485,002)	4,925,466)	5,292,979)	5,497,381)	5,997,329)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	100,755)	195,930)
Add: Current portion of lease liabilities	27,972)	25,004)	29,036)	—)	—)
Add: Noncurrent portions of lease liabilities (recorded in Other liabilities and credits)	24,740)	24,909)	29,949)	—)	—)
Total debt (adjusted)	5,537,714)	4,975,379)	5,351,964)	5,598,136)	6,193,259)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

^{1, 2} Equal to total present value of future operating lease payments.

EQT Corp., Financial Data: Reported vs. Adjusted

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EQT Corp., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Total Asset Turnover¹
Reported total asset turnover	0.31	0.15	0.20	0.23	0.09
Adjusted total asset turnover	0.31	0.15	0.20	0.23	0.09
Debt to Equity²
Reported debt to equity	0.55	0.53	0.54	0.50	0.45
Adjusted debt to equity	0.55	0.54	0.55	0.51	0.46
Return on Assets³ (ROA)
Reported ROA	-5.35%	-5.34%	-6.50%	-10.83%	5.11%
Adjusted ROA	-5.35%	-5.34%	-6.50%	-10.78%	5.08%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	EQT Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	EQT Corp. adjusted debt to equity ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	EQT Corp. adjusted ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

EQT Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Sales of natural gas, natural gas liquids and oil	6,804,020)	2,650,299)	3,791,414)	4,695,519)	2,651,318)
Total assets	21,607,388)	18,113,469)	18,809,227)	20,721,344)	29,522,604)
Activity Ratio
Total asset turnover¹	0.31	0.15	0.20	0.23	0.09
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Sales of natural gas, natural gas liquids and oil	6,804,020)	2,650,299)	3,791,414)	4,695,519)	2,651,318)
Adjusted total assets	21,607,388)	18,113,469)	18,809,227)	20,822,099)	29,718,534)
Activity Ratio
Adjusted total asset turnover²	0.31	0.15	0.20	0.23	0.09

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Total asset turnover = Sales of natural gas, natural gas liquids and oil ÷ Total assets
= 6,804,020 ÷ 21,607,388 = 0.31

² Adjusted total asset turnover = Sales of natural gas, natural gas liquids and oil ÷ Adjusted total assets
= 6,804,020 ÷ 21,607,388 = 0.31

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	EQT Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total debt	5,485,002)	4,925,466)	5,292,979)	5,497,381)	5,997,329)
Common shareholders’ equity	10,029,527)	9,255,240)	9,803,588)	10,958,229)	13,319,618)
Solvency Ratio
Debt to equity¹	0.55	0.53	0.54	0.50	0.45
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt	5,537,714)	4,975,379)	5,351,964)	5,598,136)	6,193,259)
Common shareholders’ equity	10,029,527)	9,255,240)	9,803,588)	10,958,229)	13,319,618)
Solvency Ratio
Adjusted debt to equity²	0.55	0.54	0.55	0.51	0.46

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Debt to equity = Total debt ÷ Common shareholders’ equity
= 5,485,002 ÷ 10,029,527 = 0.55

² Adjusted debt to equity = Adjusted total debt ÷ Common shareholders’ equity
= 5,537,714 ÷ 10,029,527 = 0.55

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	EQT Corp. adjusted debt-to-equity ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to EQT Corporation	(1,155,759)	(967,166)	(1,221,695)	(2,244,568)	1,508,529)
Total assets	21,607,388)	18,113,469)	18,809,227)	20,721,344)	29,522,604)
Profitability Ratio
ROA¹	-5.35%	-5.34%	-6.50%	-10.83%	5.11%
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to EQT Corporation	(1,155,759)	(967,166)	(1,221,695)	(2,244,568)	1,508,529)
Adjusted total assets	21,607,388)	18,113,469)	18,809,227)	20,822,099)	29,718,534)
Profitability Ratio
Adjusted ROA²	-5.35%	-5.34%	-6.50%	-10.78%	5.08%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROA = 100 × Net income (loss) attributable to EQT Corporation ÷ Total assets
= 100 × -1,155,759 ÷ 21,607,388 = -5.35%

² Adjusted ROA = 100 × Net income (loss) attributable to EQT Corporation ÷ Adjusted total assets
= 100 × -1,155,759 ÷ 21,607,388 = -5.35%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	EQT Corp. adjusted ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

EQT Corp. (NYSE:EQT)

Analysis of Operating Leases

Adjustments to Financial Statements for Operating Leases

EQT Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

EQT Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)