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.