Forward Air Corporation (FWRD)

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	-1,060,620	88,210	247,591	159,301	73,921
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	201,728	764,261	707,244	593,654	547,329
Return on total capital		-525.77%	11.54%	35.01%	26.83%	13.51%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-1,060,620K ÷ ($—K + $201,728K)
= -525.77%

The return on total capital for Forward Air Corporation has shown significant fluctuations over the past five years. In December 2020, the return on total capital stood at 13.51%, indicating a reasonable performance. This metric improved markedly by the end of 2021, reaching 26.83%, reflecting enhanced capital utilization and operational efficiency.

The following year, in December 2022, the return on total capital surged to 35.01%, showcasing robust performance and effective capital deployment strategies. However, there was a noticeable decline in performance by the end of 2023, with the return on total capital decreasing to 11.54%.

The most recent data point, December 2024, reveals a significant negative return on total capital of -525.77%. This extreme downturn raises concerns about capital management, profitability, and overall financial health, warranting a closer examination of the factors contributing to such a substantial negative return.

In conclusion, while Forward Air Corporation has demonstrated notable positive performance in some years, the drastic negative return in 2024 highlights challenges that need to be addressed to ensure sustainable and profitable capital utilization going forward.