Westinghouse Air Brake Technologies Corp (WAB)
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 | 1,609,000 | 1,266,000 | 1,011,000 | 876,000 | 745,000 |
| Long-term debt | US$ in thousands | 3,480,000 | 3,288,000 | 3,751,000 | 4,056,000 | 3,792,000 |
| Total stockholders’ equity | US$ in thousands | 10,091,000 | 10,487,000 | 10,102,000 | 10,201,000 | 10,123,000 |
| Return on total capital | 11.86% | 9.19% | 7.30% | 6.14% | 5.35% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,609,000K ÷ ($3,480,000K + $10,091,000K)
= 11.86%
Westinghouse Air Brake Technologies Corp's return on total capital has shown a positive trend over the years, increasing from 5.35% as of December 31, 2020, to 11.86% as of December 31, 2024. This indicates the company's improved ability to generate profits relative to the total capital employed in its operations. The consistent growth in the return on total capital reflects efficient utilization of resources and effective management of assets to generate higher returns for the company's investors and providers of capital. The increasing trend in this ratio signifies the company's strengthening financial performance and may indicate a positive outlook for the company's profitability and value creation for shareholders.
Peer comparison
Dec 31, 2024