American Eagle Outfitters Inc (AEO)

Return on total capital

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	222,717	247,047	591,065	-271,345	233,345
Long-term debt	US$ in thousands	—	8,911	341,002	325,290	—
Total stockholders’ equity	US$ in thousands	1,736,760	1,599,160	1,423,670	1,086,660	1,247,850
Return on total capital		12.82%	15.36%	33.49%	-19.22%	18.70%

February 3, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $222,717K ÷ ($—K + $1,736,760K)
= 12.82%

American Eagle Outfitters Inc's return on total capital has fluctuated over the past five years. In the most recent fiscal year, the return on total capital was 12.82%, showing a decrease compared to the previous year when it was at 15.36%.

Looking back further, in fiscal year 2022, the return on total capital was at its peak at 33.49%, indicating a very efficient use of total capital. However, in fiscal year 2021, the company experienced a negative return on total capital of -19.22%, suggesting that the capital employed did not generate sufficient returns.

The return on total capital increased significantly in fiscal year 2020 to 18.70%, indicating an improvement in the company's ability to generate profits from the total capital employed.

Overall, American Eagle Outfitters Inc's return on total capital has shown variation over the years, with a mix of positive and negative returns. Investors and analysts may want to further investigate the factors contributing to these fluctuations to assess the company's financial performance and efficiency in utilizing its total capital.