Wabash National Corporation (WNC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 313,936 | 166,448 | 24,418 | -85,020 | 145,071 |
| Long-term debt | US$ in thousands | 396,465 | 395,818 | 428,315 | 447,979 | 455,386 |
| Total stockholders’ equity | US$ in thousands | 549,496 | 397,613 | 325,539 | 404,879 | 520,988 |
| Return on total capital | 33.19% | 20.98% | 3.24% | -9.97% | 14.86% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $313,936K ÷ ($396,465K + $549,496K)
= 33.19%
The return on total capital for Wabash National Corp. has shown fluctuation over the past five years. In 2023, the return on total capital significantly increased to 32.92% from 21.09% in 2022. This improvement indicates that the company generated a higher return on its total capital investment in 2023 compared to the previous year. The return on total capital was relatively low in 2020 at 2.34%, but it has been on an upward trend since then.
Overall, Wabash National Corp. has shown variable performance in terms of return on total capital over the past five years, with notable improvements in recent years. It is important for the company to sustain and further enhance this metric to demonstrate efficient utilization of capital and create value for its stakeholders.