Forward Air Corporation (FWRD)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	212,758	265,976	159,301	44,887	117,192
Long-term debt	US$ in thousands	0	106,588	155,466	112,398	67,340
Total stockholders’ equity	US$ in thousands	764,261	707,244	593,654	547,329	577,182
Return on total capital		27.84%	32.68%	21.27%	6.80%	18.18%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $212,758K ÷ ($0K + $764,261K)
= 27.84%

The return on total capital for Forward Air Corporation has fluctuated over the past five years. In 2023, the return on total capital was 27.84%, showing a decrease from the previous year's 32.68%. However, compared to 2021 and 2019, the return on total capital in 2023 still represents a substantial increase. In 2020, the return on total capital was significantly lower at 6.80%.

Overall, the trend in return on total capital for Forward Air Corporation has been positive over the period under review, with fluctuations reflecting changes in the company's operational efficiency and capital management. The recent decrease in 2023 could suggest a potential impact on profitability, and further analysis is warranted to understand the underlying factors contributing to this change.