Buckle Inc (BKE)
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 | 271,059 | 284,493 | 299,851 | 308,803 | 328,132 | 327,795 | 330,587 | 332,756 | 335,499 | 310,445 | 282,356 | 260,006 | 168,022 | 143,327 | 122,511 | 96,581 | 131,497 | 122,852 | 115,843 | 116,402 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 413,220 | 474,018 | 436,536 | 405,174 | 376,314 | 435,607 | 388,978 | 353,593 | 312,924 | 525,804 | 477,552 | 440,098 | 396,629 | 442,404 | 414,307 | 377,949 | 389,148 | 417,338 | 403,193 | 397,958 |
| Return on total capital | 65.60% | 60.02% | 68.69% | 76.21% | 87.20% | 75.25% | 84.99% | 94.11% | 107.21% | 59.04% | 59.13% | 59.08% | 42.36% | 32.40% | 29.57% | 25.55% | 33.79% | 29.44% | 28.73% | 29.25% |
February 3, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $271,059K ÷ ($—K + $413,220K)
= 65.60%
Return on total capital is a key financial ratio that indicates how efficiently a company is utilizing its total capital to generate profits. Buckle Inc's return on total capital has shown fluctuating trends over the recent quarters. The ratio reached a peak of 107.21% in Jan 29, 2022, indicating that the company was able to generate $1.07 in profit for every dollar of total capital invested during that period.
Subsequently, the ratio experienced a downward trend, with a notable decline to 25.55% in May 2, 2020, before gradually recovering to 65.60% in Feb 3, 2024. This recovery suggests an improvement in the company's efficiency in generating returns on its total capital. However, it is important to note that the ratio has not yet reached the levels seen in early 2022.
Overall, the analysis of Buckle Inc's return on total capital highlights the company's ability to optimize its capital allocation and generate profits, although there have been fluctuations in performance over the analyzed period. Monitoring this ratio can provide valuable insights into the company's financial health and efficiency in capital utilization.
Peer comparison
Feb 3, 2024