Caleres Inc (CAL)

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 194,455 189,573 179,002 197,719 214,327 232,290 259,761 254,133 205,808 106,601 45,354 -41,578 -485,659 -424,611 -401,211 -339,267 103,813 3,707 -16 -5,677
Long-term debt US$ in thousands 100,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Total stockholders’ equity US$ in thousands 560,631 513,382 464,992 446,317 420,683 398,444 379,133 352,236 318,570 301,098 240,697 202,869 200,247 256,671 242,240 282,296 645,950 650,840 623,429 627,236
Return on total capital 34.69% 36.93% 38.50% 44.30% 50.95% 58.30% 68.51% 72.15% 64.60% 35.40% 13.31% -10.32% -121.34% -92.98% -90.72% -70.34% 12.27% 0.44% -0.00% -0.69%

February 3, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $194,455K ÷ ($—K + $560,631K)
= 34.69%

Return on total capital provides insight into how efficiently a company is utilizing its capital to generate profits. A higher return on total capital indicates better efficiency in generating profits from the total capital employed.

Analyzing Caleres Inc's return on total capital over the past 20 quarters, there is a fluctuating trend observed. The return on total capital has varied widely, ranging from negative figures to as high as 72.15%.

In recent quarters, Caleres Inc has shown a strong improvement in its return on total capital, with figures exceeding 30% in the most recent quarters. This indicates that the company has been successful in generating higher profits relative to the capital invested.

However, it is important to note the significant fluctuation in some quarters, with negative figures recorded. These quarters may indicate challenges or inefficiencies in capital utilization.

Overall, it is essential for Caleres Inc to sustain and potentially improve its return on total capital to ensure efficient use of capital and continued profitability. Regular monitoring and analysis of this ratio will be crucial for assessing the company's financial health and operational efficiency.


Peer comparison

Feb 3, 2024

Company name
Symbol
Return on total capital
Caleres Inc
CAL
34.69%
Skechers USA Inc
SKX
16.87%
Steven Madden Ltd
SHOO
25.70%
Wolverine World Wide Inc
WWW
-7.71%