Winnebago Industries Inc (WGO)
Return on total capital
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 100,200 | 299,700 | 556,000 | 407,900 | 114,737 |
| Long-term debt | US$ in thousands | 637,100 | 592,400 | 545,900 | 528,559 | 512,630 |
| Total stockholders’ equity | US$ in thousands | 1,273,300 | 1,368,100 | 1,263,000 | 1,056,900 | 827,500 |
| Return on total capital | 5.24% | 15.29% | 30.74% | 25.73% | 8.56% |
August 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $100,200K ÷ ($637,100K + $1,273,300K)
= 5.24%
The return on total capital of Winnebago Industries Inc has shown fluctuations over the past five years. The ratio was highest in August 2022 at 30.74%, signifying the company's ability to generate a significant return relative to its total capital employed. The following year, there was a decrease to 25.73%, still demonstrating a strong performance. However, the return dropped further in August 2024 to 5.24%, indicating a decrease in the company's ability to efficiently utilize its total capital to generate profits. It is essential for stakeholders to analyze the factors contributing to this decline and assess if it is a short-term fluctuation or a concerning trend in the company's financial performance.
Peer comparison
Aug 31, 2024