Whirlpool Corporation (WHR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 143,000 | 909,000 | -1,064,000 | 2,476,000 | 1,646,000 |
| Long-term debt | US$ in thousands | 4,758,000 | 6,414,000 | 7,363,000 | 4,929,000 | 5,059,000 |
| Total stockholders’ equity | US$ in thousands | 2,683,000 | 2,362,000 | 2,336,000 | 4,846,000 | 3,885,000 |
| Return on total capital | 1.92% | 10.36% | -10.97% | 25.33% | 18.40% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $143,000K ÷ ($4,758,000K + $2,683,000K)
= 1.92%
Whirlpool Corporation's return on total capital has shown significant fluctuations over the years, as evidenced by the data provided. In December 2020, the return on total capital was 18.40%, indicating the company was generating a healthy return on its invested capital. This increased substantially to 25.33% by December 2021, reflecting improved efficiency in utilizing its capital.
However, in December 2022, the return on total capital took a negative turn, standing at -10.97%. This suggests that the company may have faced challenges in generating returns that exceed the cost of its total capital during that period. Subsequently, by December 2023, Whirlpool Corporation managed to improve its return on total capital to 10.36%, indicating a partial recovery.
By December 2024, the return on total capital further declined to 1.92%, signaling a decrease in the company's ability to generate returns on its total capital efficiently. Overall, the fluctuating trend in Whirlpool Corporation's return on total capital highlights the importance of closely monitoring and managing capital allocation to enhance long-term financial performance.
Peer comparison
Dec 31, 2024