Wabash National Corporation (WNC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -356,759 | 311,949 | 167,281 | 24,418 | -85,020 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 188,830 | 549,496 | 397,613 | 325,539 | 404,879 |
| Return on total capital | -188.93% | 56.77% | 42.07% | 7.50% | -21.00% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-356,759K ÷ ($—K + $188,830K)
= -188.93%
Wabash National Corporation's return on total capital has exhibited significant fluctuations over the years.
In December 2020, the company reported a negative return on total capital of -21.00%, indicating that the company's capital was not generating sufficient returns to cover its costs.
However, by December 2021, Wabash National Corporation improved its performance and achieved a positive return on total capital of 7.50%. This indicates that the company's capital investments were starting to generate some returns.
The following year, in December 2022, the return on total capital surged to 42.07%, reflecting a substantial improvement in the company's efficiency in utilizing its capital resources to generate profits.
By December 2023, Wabash National Corporation further enhanced its performance, achieving a return on total capital of 56.77%, indicating a robust ability to generate profits from its capital investments.
However, in December 2024, the company experienced a sharp decline in its return on total capital, reporting a negative value of -188.93%. This significant downturn may raise concerns about the company's ability to effectively utilize its capital resources and generate profits.
In conclusion, while Wabash National Corporation has shown improvement in its return on total capital over the years, the sharp fluctuations highlight the volatility in the company's performance and the need for further analysis to understand the underlying factors influencing these changes.