Abercrombie & Fitch Company (ANF)

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 May 1, 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 484,671 348,892 228,415 136,382 92,648 103,759 158,947 275,925 343,084 360,850 346,735 246,091 -20,469 -14,037 -58,174 -111,801 70,068 -12,583 -26,839 -29,558
Long-term debt US$ in thousands 222,119 248,033 297,385 297,172 296,852 296,532 304,219 303,901 303,574 303,247 303,015 344,278 343,910 343,559 343,250 232,178 231,963 241,343 251,033 250,736
Total stockholders’ equity US$ in thousands 1,035,160 866,108 768,306 701,857 694,841 646,231 661,788 695,361 826,090 908,934 956,566 941,174 936,628 849,379 805,681 790,239 1,058,810 983,512 991,977 1,094,840
Return on total capital 38.55% 31.31% 21.43% 13.65% 9.34% 11.01% 16.45% 27.61% 30.37% 29.77% 27.53% 19.14% -1.60% -1.18% -5.06% -10.93% 5.43% -1.03% -2.16% -2.20%

February 3, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $484,671K ÷ ($222,119K + $1,035,160K)
= 38.55%

Abercrombie & Fitch Company's return on total capital has shown fluctuations over the past 20 quarters. The return on total capital ranged from a high of 38.55% on February 3, 2024, to a low of -10.93% on May 2, 2020. The return on total capital has generally been positive in recent quarters, indicating the company's ability to generate profits relative to its total capital employed.

The highest returns were observed in the most recent quarters, which could suggest improved operational efficiency and profitability. However, it is important to monitor the trend over time to assess the company's sustainable performance. The negative returns in some quarters highlight periods of underperformance or challenges faced by the company.

Overall, Abercrombie & Fitch Company's return on total capital reflects the company's ability to efficiently utilize its capital to generate profits, although variability in the ratio underscores the importance of ongoing performance evaluation and strategic management of capital resources.