Willscot Mobile Mini Holdings Corp A (WSC)
Return on total capital
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 262,688 | 273,200 | 272,266 | 479,986 | 651,758 | 673,459 | 667,494 | 643,507 | 591,067 | 521,121 | 228,079 | 167,879 | 59,297 | -33,210 | 179,887 | 12,945 | 50,257 | 42,245 | -11,405 | 91,407 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,011,360 | 1,018,590 | 1,054,080 | 1,201,340 | 1,320,130 | 1,261,250 | 1,312,640 | 1,438,540 | 1,563,920 | 1,565,300 | 1,681,140 | 1,773,950 | 1,966,180 | 1,996,760 | 1,956,580 | 2,005,410 | 2,005,890 | 2,141,280 | 2,094,500 | 705,090 |
| Return on total capital | 25.97% | 26.82% | 25.83% | 39.95% | 49.37% | 53.40% | 50.85% | 44.73% | 37.79% | 33.29% | 13.57% | 9.46% | 3.02% | -1.66% | 9.19% | 0.65% | 2.51% | 1.97% | -0.54% | 12.96% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $262,688K ÷ ($—K + $1,011,360K)
= 25.97%
The data indicates that Willscot Mobile Mini Holdings Corp A experienced a fluctuating return on total capital over the specified periods. In the first quarter of fiscal 2021 (June 30, 2020), the return was at 12.96%. It declined sharply to -0.54% by the end of the third quarter of 2020 (September 30, 2020), suggesting a temporary setback or increased invested capital not matched by proportional earnings.
Throughout the subsequent year, the return displayed volatility, with modest positive figures such as 1.97% at year-end 2020 and 2.51% in the first quarter of 2021, before declining to 0.65% in June 2021. A notable recovery occurred during the third quarter of 2021, when the return increased to 9.19%. However, this was followed by another downturn, with negative returns (-1.66%) at the end of 2021, indicating periods of underperformance or challenges in generating profits on total capital invested.
Starting from the beginning of 2022, a significant upward trend is evident. The return climbed from 3.02% in March 2022 to 9.46% in June 2022, and further increased substantially throughout 2022 and into 2023, reaching 13.57% by September 2022 and then soaring to 33.29% at year-end 2022. The trajectory continued positively into 2023, with the first quarter reporting 37.79%, followed by an acceleration to 44.73% in June 2023, and reaching an all-time high of approximately 50.85% in September 2023.
The upward trend sustained into the fourth quarter of 2023, with the return at 53.40%. However, the subsequent quarter saw a decline to 49.37%, and the continuation of this downward movement resulted in a return of 39.95% in June 2024, and further decrease to 25.83% in September 2024. Most recently, for the last completed period, December 31, 2024, the return was slightly higher at 26.82%, with the latest available quarter (March 31, 2025) indicating a marginal decrease to 25.97%.
Overall, the pattern demonstrates a significant improvement in the company's effectiveness at generating returns on total capital starting from early 2022, reaching peaks around 50% in late 2023, before experiencing a partial decline in late 2024 and early 2025. This suggests periods of strong operational performance and possibly strategic repositioning, balanced against periods of volatility and cyclical performance influences.