Werner Enterprises Inc (WERN)
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 | 81,694 | 181,316 | 336,614 | 250,218 | 216,167 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,455,930 | 1,528,340 | 1,443,640 | 1,327,550 | 1,195,040 |
| Return on total capital | 5.61% | 11.86% | 23.32% | 18.85% | 18.09% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $81,694K ÷ ($—K + $1,455,930K)
= 5.61%
Werner Enterprises Inc's return on total capital has shown fluctuating performance over the past five years. Starting at 18.09% as of December 31, 2020, it increased to 18.85% by the end of 2021 and further to 23.32% by December 31, 2022, indicating an improving trend. However, the return on total capital dropped sharply to 11.86% by the end of 2023 and further declined to 5.61% by December 31, 2024.
The significant fluctuations in Werner Enterprises Inc's return on total capital suggest varying efficiency in utilizing capital to generate profits. The company experienced strong performance in 2022, achieving the highest return on total capital during the period analyzed. However, the subsequent declines in 2023 and 2024 raise concerns about potential challenges in maintaining profitability and effectively utilizing the capital resources.
Overall, Werner Enterprises Inc's return on total capital demonstrates a mix of positive and negative trends, emphasizing the importance of monitoring and analyzing financial performance to identify areas for improvement and sustainable growth.
Peer comparison
Dec 31, 2024