American Eagle Outfitters Inc (AEO)

Return on total capital

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019	Feb 2, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	222,718	287,064	279,251	227,975	247,046	253,418	345,557	499,539	461,220	476,817	254,893	-271,343	-274,451	-266,900	-172,741	233,345	334,270	339,801	334,270	337,130
Long-term debt	US$ in thousands	—	—	3,225	30,225	8,911	411,911	376,522	405,807	341,002	336,249	331,680	325,290	321,081	516,953	642,972	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,736,760	1,738,290	1,673,000	1,619,020	1,599,160	1,462,530	1,372,920	1,383,010	1,423,670	1,396,700	1,275,530	1,086,660	1,068,200	997,900	996,983	1,247,850	1,260,380	1,228,580	1,241,750	1,287,560
Return on total capital		12.82%	16.51%	16.66%	13.82%	15.36%	13.52%	19.75%	27.93%	26.14%	27.51%	15.86%	-19.22%	-19.75%	-17.62%	-10.53%	18.70%	26.52%	27.66%	26.92%	26.18%

February 3, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $222,718K ÷ ($—K + $1,736,760K)
= 12.82%

The return on total capital for American Eagle Outfitters Inc has shown significant fluctuations over the past few years. In the most recent period, it stood at 12.82%, reflecting a moderate performance in generating returns relative to the total capital employed. This figure is lower compared to the previous reported figures, which peaked at 27.93% in April 2022.

The company's return on total capital has experienced both peaks and troughs over the examined periods, indicating fluctuations in operational efficiency and profitability. The negative returns in January and October 2021 are concerning, suggesting potential financial challenges during those periods.

Overall, a return on total capital ranging from -19.75% to 27.93% demonstrates the varying performance of American Eagle Outfitters Inc in utilizing its total capital effectively to generate profits, thus highlighting the importance of closely monitoring and analyzing the company's financial performance.