American Eagle Outfitters Inc (AEO)
Return on total capital
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 444,865 | 311,831 | 203,883 | 228,135 | 275,660 | 333,864 | 383,452 | 302,197 | 199,667 | 206,118 | 214,410 | 287,852 | 382,569 | 264,465 | 204,897 | 129,251 | 87,584 | 211,751 | 407,424 | 575,209 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | 3,225 | — | 30,225 | — | 8,911 | — | 411,911 | — | 376,522 | — | — |
| Total stockholders’ equity | US$ in thousands | 1,766,860 | 1,746,600 | 1,694,370 | 1,752,360 | 1,736,760 | 1,736,760 | 1,738,290 | 1,738,290 | 1,673,000 | 1,673,000 | 1,619,020 | 1,619,020 | 1,599,160 | 1,599,160 | 1,462,530 | 1,462,530 | 1,372,920 | 1,372,920 | 1,383,010 | 1,423,670 |
| Return on total capital | 25.18% | 17.85% | 12.03% | 13.02% | 15.87% | 19.22% | 22.06% | 17.38% | 11.93% | 12.30% | 13.24% | 17.45% | 23.92% | 16.45% | 14.01% | 6.90% | 6.38% | 12.10% | 29.46% | 40.40% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $444,865K ÷ ($—K + $1,766,860K)
= 25.18%
American Eagle Outfitters Inc's return on total capital has shown varying trends over the periods provided. The return on total capital was relatively high at 40.40% on January 31, 2022, showing the company was efficiently utilizing its capital to generate profits. However, this rate decreased to 29.46% by April 30, 2022, and further declined to 6.38% by July 31, 2022.
Subsequently, there was a slight improvement in the return on total capital to 14.01% by October 31, 2022, indicating a potential recovery. The rate further increased to 23.92% by January 31, 2023, showing improved capital efficiency. The return on total capital continued to fluctuate over the subsequent periods, ranging between 11.93% and 25.18% as of January 31, 2025.
Overall, while there were fluctuations in American Eagle Outfitters Inc's return on total capital, the company has managed to maintain relatively competitive performance and generate reasonable returns on the total capital employed in its operations. It is important for stakeholders to monitor these ratios to assess the company's efficiency in utilizing its capital effectively.
Peer comparison
Jan 31, 2025