Whirlpool Corporation (WHR)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 1,719,000 | 1,662,000 | 1,215,000 | 386,000 |
| Long-term debt | US$ in thousands | 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 | 4,140,000 | 4,105,000 | 4,155,000 | 4,137,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 3,195,000 | 3,028,000 | 2,749,000 | 2,802,000 |
| Return on total capital | 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% | 23.44% | 23.30% | 17.60% | 5.56% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $908,000K ÷ ($6,414,000K + $2,362,000K)
= 10.35%
To analyze Whirlpool Corp.'s return on total capital over the past eight quarters, we observe a consistent trend of decreasing returns since Q2 2022. The return on total capital has declined from 21.47% in Q1 2022 to 11.56% in Q4 2023. This downward trend may indicate a potential inefficiency in utilizing the company's total capital to generate profits.
The company's return on total capital was at its peak in Q2 2022 at 21.40%, but has been steadily decreasing since then. This decline could be attributed to various factors such as increasing costs, lower revenue generation, or inefficient capital allocation.
Overall, the decreasing trend in Whirlpool Corp.'s return on total capital raises concerns about the company's ability to generate returns for its total invested capital. Further analysis of the company's financial performance and strategic decisions may be warranted to identify potential areas for improvement.
Peer comparison
Dec 31, 2023