Abercrombie & Fitch Company (ANF)

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	780,754	738,054	773,949	723,759	721,127	588,708	454,071	352,799	248,787	248,495	245,675	231,903	215,438	124,300	35,087	5,480	69,963	169,144	250,328	331,883
Long-term debt	US$ in thousands	—	—	—	—	222,119	—	—	248,033	—	297,385	—	297,172	—	296,852	—	296,532	—	304,219	—	—
Total stockholders’ equity	US$ in thousands	1,335,630	1,247,130	1,206,530	1,078,890	1,035,160	1,035,160	866,108	866,108	768,306	768,306	701,857	701,857	694,841	694,841	646,231	646,231	661,788	661,788	695,361	826,090
Return on total capital		58.46%	59.18%	64.15%	67.08%	57.36%	56.87%	52.43%	31.67%	32.38%	23.32%	35.00%	23.21%	31.01%	12.53%	5.43%	0.58%	10.57%	17.51%	36.00%	40.18%

January 31, 2025 calculation

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

Abercrombie & Fitch Company's return on total capital has shown significant fluctuations over the reported periods. Starting at a high of 40.18% in January 2022, the return decreased to 10.57% by July 2022, indicating a sudden drop in efficiency in utilizing its total capital. However, there was a subsequent increase to 35.00% in April 2023, followed by another drop to 23.32% in July 2023.

From October 2023 onward, the return on total capital demonstrated a more positive trend, consistently increasing and reaching a peak of 67.08% in April 2024. The return slightly decreased in the following periods but remained relatively high, indicating improved efficiency in generating profits relative to the capital employed.

Overall, the return on total capital for Abercrombie & Fitch Company has shown variability, but the general trend is positive, indicating the company's ability to effectively utilize its capital to generate returns for its shareholders.