Abercrombie & Fitch Company (ANF)

Return on total capital

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Earnings before interest and tax (EBIT) US$ in thousands 780,754 507,361 518,604 108,305 92,648
Long-term debt US$ in thousands 222,119 296,852
Total stockholders’ equity US$ in thousands 1,335,630 1,035,160 1,035,160 694,841 694,841
Return on total capital 58.46% 40.35% 50.10% 15.59% 9.34%

January 31, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $780,754K ÷ ($—K + $1,335,630K)
= 58.46%

The return on total capital for Abercrombie & Fitch Company has shown a positive trend over the period considered. The ratio increased from 9.34% as of January 28, 2023, to 58.46% as of January 31, 2025. This indicates that the company has been effectively utilizing its total capital to generate returns for its stakeholders. The significant improvement in the ratio from 2023 to 2025 suggests enhanced efficiency in deploying capital and generating profits. Overall, Abercrombie & Fitch Company has demonstrated an ability to generate favorable returns on its total capital, reflecting positively on its financial performance and management effectiveness.