WESCO International Inc (WCC)
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 | 1,315,900 | 1,381,300 | 1,431,070 | 849,985 | 349,433 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,970,700 | 5,037,100 | 4,449,570 | 3,776,210 | 3,336,390 |
| Return on total capital | 26.47% | 27.42% | 32.16% | 22.51% | 10.47% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,315,900K ÷ ($—K + $4,970,700K)
= 26.47%
Based on the data provided for WESCO International Inc, the return on total capital has shown a positive trend over the past five years.
- In December 31, 2020, the return on total capital stood at 10.47%, indicating the company generated a return of 10.47% on its total invested capital for that year.
- The return on total capital significantly improved to 22.51% by December 31, 2021, reflecting a notable increase in the company's profitability and efficiency in utilizing its capital.
- By December 31, 2022, the return on total capital further surged to 32.16%, reaching its highest point in the period under review. This sharp increase indicates that the company was able to generate a substantial return on its total capital investment.
- Although there was a slight decline in the return on total capital in December 31, 2023, to 27.42%, the figure remained relatively high, signifying continued solid performance.
- Finally, by December 31, 2024, the return on total capital remained strong at 26.47%, indicating that WESCO International Inc continued to efficiently utilize its total capital to generate returns for its stakeholders.
Overall, the consistent increase in the return on total capital over the years reflects the company's ability to generate higher profits relative to the total capital employed, suggesting effective capital allocation and operational performance.
Peer comparison
Dec 31, 2024