Wabash National Corporation (WNC)
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 | 313,936 | 310,552 | 284,733 | 216,488 | 166,448 | 80,419 | 46,404 | 33,296 | 24,433 | 62,265 | 52,121 | 36,119 | -85,018 | -63,453 | -32,202 | 10,133 | 145,098 | 137,318 | 114,724 | 116,158 |
| Long-term debt | US$ in thousands | 396,465 | 396,300 | 396,138 | 395,977 | 395,818 | 443,662 | 454,506 | 484,354 | 428,315 | 419,130 | 418,900 | 448,214 | 447,979 | 457,222 | 455,800 | 500,591 | 455,386 | 475,122 | 489,865 | 502,757 |
| Total stockholders’ equity | US$ in thousands | 549,496 | 518,687 | 481,024 | 424,443 | 397,613 | 360,102 | 338,171 | 342,253 | 325,539 | 386,194 | 399,980 | 402,302 | 404,879 | 397,365 | 393,217 | 393,969 | 520,988 | 515,058 | 501,565 | 483,606 |
| Return on total capital | 33.19% | 33.94% | 32.46% | 26.39% | 20.98% | 10.01% | 5.85% | 4.03% | 3.24% | 7.73% | 6.36% | 4.25% | -9.97% | -7.42% | -3.79% | 1.13% | 14.86% | 13.87% | 11.57% | 11.78% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 a consistent upward trend over the past eight quarters, reflecting an improving performance in utilizing both debt and equity to generate profits. The return on total capital has significantly increased from 8.44% in Q1 2022 to 32.92% in Q4 2023, indicating a substantial growth in the company's efficiency in deploying capital to generate earnings.
This upward trajectory suggests that Wabash National Corp. has been effectively managing its capital structure and investments, resulting in higher returns for its stakeholders. The company's ability to generate higher returns on total capital indicates improved operational efficiency and profitability, which can enhance shareholder value and financial performance over time.
Overall, the consistent improvement in Wabash National Corp.'s return on total capital highlights its strong financial management and strategic decision-making, positioning the company favorably in the market and potentially leading to sustainable long-term growth and success.