WESCO International Inc (WCC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,264,000 | 1,271,000 | 1,287,300 | 1,307,700 | 1,403,000 | 1,475,448 | 1,499,552 | 1,506,066 | 1,431,071 | 1,312,789 | 1,146,671 | 996,831 | 849,984 | 684,212 | 628,298 | 497,913 | 422,768 | 412,882 | 328,094 | 336,755 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,970,700 | 5,042,400 | 4,857,300 | 4,982,700 | 5,037,100 | 4,882,500 | 4,800,300 | 4,594,300 | 4,449,570 | 4,191,950 | 4,116,790 | 3,967,480 | 3,776,210 | 3,581,820 | 3,525,000 | 3,407,060 | 3,336,390 | 3,213,220 | 3,100,400 | 2,202,130 |
| Return on total capital | 25.43% | 25.21% | 26.50% | 26.24% | 27.85% | 30.22% | 31.24% | 32.78% | 32.16% | 31.32% | 27.85% | 25.13% | 22.51% | 19.10% | 17.82% | 14.61% | 12.67% | 12.85% | 10.58% | 15.29% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,264,000K ÷ ($—K + $4,970,700K)
= 25.43%
WESCO International Inc's return on total capital has shown fluctuation over the analyzed period. The trend indicates a generally increasing performance from March 2020 to December 2022, peaking at 32.16% by the end of December 2022. After that peak, the return on total capital started to decline, reaching 25.43% by the end of December 2024.
The gradual increase in return on total capital up to December 2022 could be attributed to improved operational efficiency, effective capital allocation, or favorable market conditions. However, the subsequent decline could be a result of various factors such as increased competition, rising costs, or changes in the regulatory environment.
It is important for stakeholders to monitor this metric closely to assess the company's ability to generate profits from its invested capital efficiently. A declining trend in return on total capital might signify potential inefficiencies or challenges in the company's operations and financial management that require further evaluation and strategic actions.
Peer comparison
Dec 31, 2024