Whirlpool Corporation (WHR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 909,000 | -1,064,000 | 2,476,000 | 1,646,000 | 1,703,000 |
| Long-term debt | US$ in thousands | 6,414,000 | 7,363,000 | 4,929,000 | 5,059,000 | 4,140,000 |
| Total stockholders’ equity | US$ in thousands | 2,362,000 | 2,336,000 | 4,846,000 | 3,885,000 | 3,195,000 |
| Return on total capital | 10.36% | -10.97% | 25.33% | 18.40% | 23.22% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $909,000K ÷ ($6,414,000K + $2,362,000K)
= 10.36%
Whirlpool Corp.'s return on total capital has shown fluctuations over the past five years. The ratio decreased from 2019 to 2020, but then increased significantly in 2021, indicating a strong performance in that year. However, there was a slight decline in the ratio in 2022 and 2023 compared to the previous two years.
Overall, the company has maintained a relatively healthy return on total capital, with figures generally above 10%. This suggests that Whirlpool Corp. has been efficient in generating returns from its total capital employed in the business. The variations in the ratio over the years may reflect changes in the company's financial structure, profitability, and investment decisions. Further analysis of the company's financial statements and business strategies would be necessary to understand the underlying factors driving these fluctuations.
Peer comparison
Dec 31, 2023