Wingstop Inc (WING)
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 | 165,616 | 153,590 | 144,424 | 129,660 | 112,594 | 111,651 | 105,080 | 100,998 | 91,933 | 77,280 | 74,031 | 70,560 | 73,756 | 69,619 | 63,088 | 63,722 | 57,390 | 56,203 | 53,851 | 44,601 |
| Long-term debt | US$ in thousands | 1,206,200 | 713,729 | 713,258 | 712,790 | 712,327 | 711,867 | 711,411 | 705,483 | 706,846 | 708,176 | 709,546 | 710,918 | 469,394 | 469,084 | 468,774 | 466,056 | 466,933 | 311,240 | 310,846 | 310,461 |
| Total stockholders’ equity | US$ in thousands | -675,586 | -447,466 | -437,541 | -434,379 | -457,366 | -475,442 | -365,351 | -379,790 | -390,861 | -406,596 | -415,470 | -424,227 | -309,525 | -314,132 | -322,243 | -331,728 | -341,310 | -183,537 | -192,672 | -202,948 |
| Return on total capital | 31.21% | 57.68% | 52.38% | 46.57% | 44.16% | 47.22% | 30.36% | 31.01% | 29.09% | 25.63% | 25.17% | 24.61% | 46.14% | 44.93% | 43.05% | 47.44% | 45.68% | 44.01% | 45.57% | 41.48% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $165,616K ÷ ($1,206,200K + $-675,586K)
= 31.21%
Wingstop Inc's return on total capital has shown fluctuations over the past five years. The ratio ranged from a low of 24.61% as of March 31, 2022, to a high of 57.68% as of September 30, 2024. This indicates some variability in the company's ability to generate returns from its capital investments during this period. Notably, there was a significant increase in return on total capital from June 30, 2024, to September 30, 2024, where the ratio jumped from 52.38% to 57.68%. However, the ratio dropped to 31.21% by December 31, 2024, signifying a decline in the company's efficiency in capital utilization compared to the previous quarter. Overall, Wingstop Inc's return on total capital has displayed both upswings and downturns, reflecting changes in the company's profitability and efficiency in generating returns on its invested capital.
Peer comparison
Dec 31, 2024