Wingstop Inc (WING)
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 | 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 | 42,901 | 42,686 | 41,093 | 40,732 |
| Long-term debt | US$ in thousands | 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 | 307,669 | 308,081 | 308,511 | 308,931 |
| Total stockholders’ equity | US$ in thousands | -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 | -209,428 | -211,575 | -216,368 | -220,478 |
| Return on total capital | 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% | 43.67% | 44.23% | 44.60% | 46.05% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $112,594K ÷ ($712,327K + $-457,366K)
= 44.16%
Wingstop Inc's return on total capital has shown fluctuations over the given periods, ranging from a low of 24.61% to a high of 47.44%. The return on total capital indicates the company's ability to generate profits from the capital invested in the business.
From the data, we can observe that the return on total capital has generally been healthy, with multiple periods showing returns above 40%. However, there are also periods where the return dips below 30%.
It is important to further analyze the factors contributing to these fluctuations in order to assess the effectiveness of Wingstop Inc's capital utilization and profitability strategies. Overall, a consistent and high return on total capital suggests efficient management of resources and strong profitability for the company.
Peer comparison
Dec 31, 2023