Werner Enterprises Inc (WERN)

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	181,408	228,013	264,430	314,209	332,290	347,952	358,459	357,907	348,012	328,102	304,150	259,988	228,909	213,473	205,168	211,369	228,760	237,862	247,787	239,812
Long-term debt	US$ in thousands	646,250	686,250	636,250	686,250	687,500	568,750	440,000	421,250	422,500	343,750	295,000	175,000	175,000	175,000	175,000	175,000	225,000	275,000	390,000	50,000
Total stockholders’ equity	US$ in thousands	1,528,340	1,512,220	1,497,070	1,470,540	1,443,640	1,386,560	1,343,870	1,341,460	1,327,550	1,306,560	1,296,580	1,227,730	1,195,040	1,180,140	1,136,390	1,102,040	1,111,010	1,064,800	1,032,340	1,275,390
Return on total capital		8.34%	10.37%	12.40%	14.57%	15.59%	17.80%	20.09%	20.30%	19.89%	19.88%	19.11%	18.53%	16.71%	15.75%	15.65%	16.55%	17.12%	17.75%	17.42%	18.09%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $181,408K ÷ ($646,250K + $1,528,340K)
= 8.34%

Werner Enterprises, Inc.'s return on total capital has shown a declining trend over the past eight quarters. The company's return on total capital has decreased from 17.88% in Q1 2022 to 7.96% in Q4 2023. This indicates that the company may be experiencing challenges in generating returns from its total invested capital.

The decreasing trend in return on total capital may raise concerns about the company's efficiency in utilizing its capital resources to generate profits. It suggests that the company may be facing difficulties in effectively deploying its capital to generate satisfactory returns for its investors.

Investors and stakeholders may need to further investigate the reasons behind this declining trend in return on total capital to assess the company's financial performance and future prospects accurately.

Overall, the decreasing trend in Werner Enterprises, Inc.'s return on total capital highlights the importance of monitoring and analyzing financial ratios to understand the company's operational efficiency and financial health.