WESCO International Inc (WCC)
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 | 1,406,400 | 1,438,080 | 801,873 | 347,038 | 346,217 |
| Long-term debt | US$ in thousands | 5,313,100 | 5,346,000 | 4,701,540 | 4,369,950 | 1,257,070 |
| Total stockholders’ equity | US$ in thousands | 5,037,100 | 4,454,200 | 3,782,520 | 3,343,720 | 2,265,480 |
| Return on total capital | 13.59% | 14.67% | 9.45% | 4.50% | 9.83% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,406,400K ÷ ($5,313,100K + $5,037,100K)
= 13.59%
Wesco International, Inc.'s return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 13.58%, which decreased from 14.57% in 2022. This decline in 2023 may indicate a reduction in the company's efficiency in generating profits from its total capital employed.
Comparing the returns in 2023 and 2021, there was a notable improvement from 9.44% to 13.58%. This suggests that Wesco International, Inc. managed to enhance its ability to generate returns from its total capital over the year.
In 2020, the return on total capital was at 4.21%, significantly lower than the subsequent years. This could indicate a period of lower efficiency or profitability in that particular year.
In 2019, the return on total capital was higher at 9.71% compared to 2020 but lower than the returns seen in 2021, 2022, and 2023. This signifies that the company had more effective capital utilization in the recent years compared to 2019.
Overall, Wesco International, Inc.'s return on total capital has shown variability over the years, with fluctuations in performance that could be impacted by operational efficiency, financial management, and external factors affecting the business.
Peer comparison
Dec 31, 2023