Abercrombie & Fitch Company (ANF)

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	507,361	92,648	343,084	-22,084	76,637
Long-term debt	US$ in thousands	222,119	296,852	303,574	343,910	231,963
Total stockholders’ equity	US$ in thousands	1,035,160	694,841	826,090	936,628	1,058,810
Return on total capital		40.35%	9.34%	30.37%	-1.72%	5.94%

February 3, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $507,361K ÷ ($222,119K + $1,035,160K)
= 40.35%

The return on total capital for Abercrombie & Fitch Company has shown significant fluctuations over the past five years. In 2024, the return on total capital reached 40.35%, indicating a strong performance in generating profits relative to the total capital employed. This represents a notable improvement compared to the previous year, where the return on total capital was only 9.34%.

In 2022, Abercrombie & Fitch Company achieved a return on total capital of 30.37%, reflecting a solid performance in utilizing its total capital to generate profits. This was a considerable increase from the negative return on total capital of -1.72% in 2021, indicating a turnaround in the company's profitability.

Furthermore, in 2020, the return on total capital was 5.94%, demonstrating a moderate performance in generating profits relative to the total capital employed. Overall, the return on total capital for Abercrombie & Fitch Company has exhibited volatility over the years, with periods of strong performance interspersed with periods of lower returns.