Forward Air Corporation (FWRD)

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	212,758	157,628	213,800	259,134	265,976	256,538	220,382	186,961	146,801	95,971	83,627	49,346	44,887	76,029	83,192	105,504	117,505	118,935	118,485	121,199
Long-term debt	US$ in thousands	0	118,857	119,766	150,681	106,588	106,934	147,279	155,125	155,466	—	—	—	112,398	—	—	—	67,340	—	—	—
Total stockholders’ equity	US$ in thousands	764,261	665,700	673,609	685,633	707,244	682,698	664,350	611,771	593,654	555,536	550,349	544,731	547,329	552,196	566,292	565,841	577,182	561,145	550,042	553,439
Return on total capital		27.84%	20.09%	26.95%	30.99%	32.68%	32.49%	27.15%	24.38%	19.60%	17.28%	15.20%	9.06%	6.80%	13.77%	14.69%	18.65%	18.23%	21.20%	21.54%	21.90%

December 31, 2023 calculation

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

Forward Air Corporation's return on total capital has shown fluctuation over the past few quarters, ranging from a low of 6.80% in December 2020 to a high of 32.68% in December 2022. The return on total capital has generally been on an upward trend, with some intermittent decreases in between.

The return on total capital for the most recent quarter, December 2023, stands at 27.84%. This indicates that the company earned a return of 27.84% on the total capital employed in its operations during the period.

Overall, the return on total capital for Forward Air Corporation has improved compared to previous periods, signaling management's efficiency in generating returns on the capital invested in the business. However, it is essential to monitor these trends over time to ensure sustained profitability and value creation for shareholders.