Caleres Inc (CAL)
Return on total capital
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 149,115 | 194,455 | 200,665 | 227,298 | 214,327 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 599,024 | 560,631 | 560,631 | 420,683 | 420,683 |
| Return on total capital | 24.89% | 34.69% | 35.79% | 54.03% | 50.95% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $149,115K ÷ ($—K + $599,024K)
= 24.89%
Based on the provided data, Caleres Inc's return on total capital has shown a declining trend over the period under review.
In January 2023, the return on total capital stood at a robust 50.95%, reflecting strong profitability and efficiency in utilizing both debt and equity capital. By the end of January 2024, the return decreased to 35.79%, indicating a decrease in the company's ability to generate profits from its total capital base.
The trend continued into February 2024 and January 2025, with return on total capital figures of 34.69% and 24.89%, respectively. These declining percentages suggest that Caleres Inc may be facing challenges in maintaining or improving its profitability relative to the total capital employed in its operations.
Overall, the decreasing trend in return on total capital highlights the importance for Caleres Inc to assess and potentially address the factors impacting its profitability and capital efficiency to enhance long-term financial performance and sustainability.
Peer comparison
Jan 31, 2025