Whirlpool Corporation (WHR)
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 | 166,000 | 694,000 | 693,000 | 851,000 | 908,000 | -955,000 | -983,000 | -1,560,000 | -1,064,000 | 911,000 | 1,290,000 | 2,299,000 | 2,476,000 | 2,667,000 | 2,636,000 | 2,012,000 | 1,644,000 | 1,313,000 | 1,445,000 | 1,598,000 |
| Long-term debt | US$ in thousands | 4,758,000 | 6,382,000 | 6,313,000 | 6,674,000 | 6,414,000 | 6,341,000 | 6,393,000 | 7,382,000 | 7,363,000 | 4,722,000 | 4,831,000 | 4,631,000 | 4,929,000 | 4,961,000 | 5,001,000 | 4,982,000 | 5,059,000 | 4,965,000 | 4,886,000 | 4,662,000 |
| Total stockholders’ equity | US$ in thousands | 2,683,000 | 3,042,000 | 3,097,000 | 2,354,000 | 2,362,000 | 2,064,000 | 2,018,000 | 2,061,000 | 2,336,000 | 4,178,000 | 4,036,000 | 4,575,000 | 4,846,000 | 4,964,000 | 4,951,000 | 4,222,000 | 3,885,000 | 3,371,000 | 3,018,000 | 3,060,000 |
| Return on total capital | 2.23% | 7.36% | 7.36% | 9.43% | 10.35% | -11.36% | -11.69% | -16.52% | -10.97% | 10.24% | 14.55% | 24.97% | 25.33% | 26.87% | 26.49% | 21.86% | 18.38% | 15.75% | 18.28% | 20.69% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $166,000K ÷ ($4,758,000K + $2,683,000K)
= 2.23%
Whirlpool Corporation's return on total capital has exhibited fluctuations over the periods provided in the data. The return on total capital was relatively high at the beginning of the observation period, exceeding 20% in March 2020, and remained above 15% until September 2021. During the second half of 2021 and the first half of 2022, the return on total capital reached its peak, surpassing 25%, indicating strong performance.
However, the return on total capital experienced a notable decline in the latter half of 2022 and throughout 2023, with negative returns recorded in some quarters, highlighting potential challenges or inefficiencies in capital utilization during that period. By December 2024, the return on total capital had decreased significantly to around 2.23%, signifying a potential need for Whirlpool Corporation to reassess its capital allocation strategies and operational efficiency to improve overall returns.
Peer comparison
Dec 31, 2024