WESCO International Inc (WCC)
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 | 1,406,400 | 1,472,485 | 1,493,585 | 1,500,485 | 1,438,085 | 1,276,584 | 1,104,450 | 952,622 | 801,873 | 674,352 | 622,981 | 419,379 | 347,041 | 338,086 | 253,724 | 336,404 | 346,217 | 352,908 | 356,692 | 349,925 |
| Long-term debt | US$ in thousands | 5,313,100 | 5,378,300 | 5,523,100 | 5,595,100 | 5,346,000 | 5,192,820 | 5,039,860 | 4,836,660 | 4,701,540 | 4,565,770 | 4,303,120 | 4,592,730 | 4,369,950 | 4,878,120 | 5,068,550 | 1,542,600 | 1,257,070 | 1,346,330 | 1,399,490 | 1,214,280 |
| Total stockholders’ equity | US$ in thousands | 5,037,100 | 4,888,200 | 4,805,600 | 4,594,300 | 4,454,200 | 4,196,820 | 4,116,790 | 3,973,400 | 3,782,520 | 3,588,480 | 3,532,270 | 3,407,060 | 3,343,720 | 3,220,860 | 3,107,400 | 2,209,170 | 2,265,480 | 2,193,120 | 2,141,080 | 2,202,360 |
| Return on total capital | 13.59% | 14.34% | 14.46% | 14.73% | 14.67% | 13.60% | 12.06% | 10.81% | 9.45% | 8.27% | 7.95% | 5.24% | 4.50% | 4.17% | 3.10% | 8.97% | 9.83% | 9.97% | 10.07% | 10.24% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,406,400K ÷ ($5,313,100K + $5,037,100K)
= 13.59%
The return on total capital for Wesco International, Inc. has shown consistent improvement over the past quarters, with an upward trend from Q1 2022 to Q4 2023. The company's return on total capital has increased from 10.73% in Q1 2022 to 14.71% in Q1 2023, reflecting an enhancement in the efficiency of capital utilization and/or profitability. This indicates that Wesco International, Inc. has been able to generate a relatively higher return on the total capital employed in its operations, suggesting effective management of its assets and liabilities to generate profits. The consistent improvement in return on total capital is a positive indicator of the company's financial performance and financial health.
Peer comparison
Dec 31, 2023