Winnebago Industries Inc (WGO)
Return on total capital
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 299,700 | 556,000 | 407,900 | 114,737 | 156,848 |
| Long-term debt | US$ in thousands | 592,400 | 545,900 | 528,559 | 512,630 | 245,402 |
| Total stockholders’ equity | US$ in thousands | 1,368,100 | 1,263,000 | 1,056,900 | 827,500 | 632,212 |
| Return on total capital | 15.29% | 30.74% | 25.73% | 8.56% | 17.87% |
August 26, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $299,700K ÷ ($592,400K + $1,368,100K)
= 15.29%
Winnebago Industries, Inc.'s return on total capital has exhibited fluctuations over the past five years. The return on total capital was 15.34% in 2023, which marks a decrease from the previous year's 32.26%. This downward trend is significant as the return on total capital dropped by approximately 16 percentage points. However, it is important to note that in 2022, the return on total capital was notably high at 32.26%, reflecting strong efficiency in generating returns from the total capital employed. The return on total capital for 2021 stood at 25.70%, indicating a consistent performance, while in 2020, there was a decline to 8.49%. Following this, there was a recovery in 2019 as the return on total capital increased to 17.51%. Overall, these variations in the return on total capital suggest fluctuations in the company's ability to generate profits in relation to the total capital invested. Further analysis of the company's financial performance and market conditions would be beneficial in understanding the underlying factors contributing to these changes.
Peer comparison
Aug 26, 2023