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