Westinghouse Air Brake Technologies Corp (WAB)
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 | 1,266,000 | 1,011,000 | 876,000 | 745,000 | 663,000 |
| Long-term debt | US$ in thousands | 3,288,000 | 3,751,000 | 4,056,000 | 3,792,000 | 4,333,600 |
| Total stockholders’ equity | US$ in thousands | 10,487,000 | 10,102,000 | 10,201,000 | 10,123,000 | 9,956,500 |
| Return on total capital | 9.19% | 7.30% | 6.14% | 5.35% | 4.64% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,266,000K ÷ ($3,288,000K + $10,487,000K)
= 9.19%
Westinghouse Air Brake Technologies Corp's return on total capital has shown a positive trend over the past five years. The company's return on total capital has steadily increased from 4.67% in 2019 to 8.87% in 2023. This indicates that the company has been able to generate more profit relative to the total capital employed in its operations.
The consistent improvement in return on total capital suggests that Westinghouse Air Brake Technologies Corp has been effectively managing its capital investments and utilizing its resources efficiently to generate higher returns for its investors. This trend is generally viewed positively by investors and analysts as it indicates the company's ability to generate value from its capital base.
Overall, the increasing trend in return on total capital reflects positively on Westinghouse Air Brake Technologies Corp's financial performance and operational efficiency over the years.
Peer comparison
Dec 31, 2023