Werner Enterprises Inc (WERN)

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	73,792	82,806	93,369	112,203	136,230	174,172	200,133	218,807	256,167	270,543	302,033	343,844	323,188	319,955	294,675	250,513	225,859	206,667	193,553	194,323
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,455,930	1,448,560	1,455,230	1,518,000	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
Return on total capital		5.07%	5.72%	6.42%	7.39%	8.91%	11.52%	13.37%	14.88%	17.74%	19.51%	22.47%	25.63%	24.34%	24.49%	22.73%	20.40%	18.90%	17.51%	17.03%	17.63%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $73,792K ÷ ($—K + $1,455,930K)
= 5.07%

Werner Enterprises Inc's return on total capital has shown a fluctuating trend from March 31, 2020, to December 31, 2024. The ratio started at 17.63% in March 2020 and gradually increased to reach its peak of 25.63% in March 31, 2022. However, after reaching this peak, the return on total capital started to decline steadily. By December 31, 2024, the ratio had decreased to 5.07%.

The company's return on total capital reveals its efficiency in generating profits from the total capital employed in its operations. The downward trend observed in the later periods may indicate challenges in maintaining profitability relative to the overall capital invested in the business. It is essential for investors and stakeholders to closely monitor this ratio to assess Werner Enterprises Inc's financial performance and management of capital resources.