Burlington Stores Inc (BURL)
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 | 470,824 | 313,703 | 553,732 | -429,779 | 584,542 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 996,932 | 794,905 | 760,417 | 464,754 | 528,149 |
| Return on total capital | 47.23% | 39.46% | 72.82% | -92.47% | 110.68% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $470,824K ÷ ($—K + $996,932K)
= 47.23%
To analyze Burlington Stores Inc's return on total capital over the past five fiscal years, we observe a fluctuation in the ratio. In fiscal year 2024, the return on total capital stood at 47.23%, reflecting a solid performance in utilizing both debt and equity to generate profits. This indicates that the company generated $0.47 in profit for every dollar of total capital employed.
In the preceding year, fiscal year 2023, the return on total capital decreased slightly to 39.46%, which may suggest a moderation in the company's efficiency in generating returns on its capital base.
An interesting trend is noted in fiscal year 2022, where the return on total capital significantly increased to 72.82%, the highest among the five years. This suggests a marked improvement in the company's capital utilization efficiency and profitability.
Fiscal year 2021 shows a sharp decline in the return on total capital to -92.47%, indicating a substantial loss on the capital employed during the year. Such a negative figure may be attributed to specific financial events affecting profitability, necessitating further investigation.
Lastly, in fiscal year 2020, Burlington Stores Inc rebounded strongly with a return on total capital of 110.68%, reflecting an efficient use of capital to generate profits. This robust performance signifies a recovery from the preceding negative return.
Overall, the fluctuating trend in Burlington Stores Inc's return on total capital underscores the importance of evaluating the company's capital allocation strategies and financial performance across various periods to assess its long-term sustainability and profitability.
Peer comparison
Feb 3, 2024