Westinghouse Air Brake Technologies Corp (WAB)
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 | 1,266,000 | 1,205,000 | 1,096,000 | 1,048,000 | 1,011,000 | 1,028,000 | 984,000 | 923,000 | 876,000 | 773,600 | 763,300 | 719,700 | 745,000 | 809,500 | 771,900 | 813,100 | 663,100 | 530,400 | 486,500 | 409,400 |
| Long-term debt | US$ in thousands | 3,288,000 | 3,288,000 | 3,401,000 | 3,189,000 | 3,751,000 | 3,824,000 | 3,987,000 | 4,225,000 | 4,056,000 | 4,067,200 | 4,079,600 | 3,923,300 | 3,792,000 | 3,799,900 | 3,768,700 | 4,655,100 | 4,333,600 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,487,000 | 10,326,000 | 10,188,000 | 10,085,000 | 10,102,000 | 9,881,000 | 9,905,000 | 10,049,000 | 10,201,000 | 10,156,600 | 10,294,400 | 10,144,100 | 10,123,000 | 10,016,900 | 9,845,600 | 9,761,800 | 9,956,500 | 9,696,400 | 9,801,760 | 9,687,850 |
| Return on total capital | 9.19% | 8.85% | 8.07% | 7.90% | 7.30% | 7.50% | 7.08% | 6.47% | 6.14% | 5.44% | 5.31% | 5.12% | 5.35% | 5.86% | 5.67% | 5.64% | 4.64% | 5.47% | 4.96% | 4.23% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,266,000K ÷ ($3,288,000K + $10,487,000K)
= 9.19%
The return on total capital for Westinghouse Air Brake Technologies Corp has shown a generally positive trend over the past eight quarters, with a gradual increase from 6.60% in Q1 2022 to 8.87% in Q4 2023. This indicates that the company has been able to efficiently utilize its capital to generate returns for its investors and stakeholders. The consistent improvement in this ratio suggests effective financial management and operational performance. Overall, the increasing trend in return on total capital reflects positively on the company's ability to generate profits relative to the total capital employed in its operations.
Peer comparison
Dec 31, 2023