Chewy Inc (CHWY)
Return on total capital
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 157,212 | 51,812 | 51,812 | 55,753 | 54,452 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 261,459 | 510,244 | 510,244 | 213,957 | 160,268 |
| Return on total capital | 60.13% | 10.15% | 10.15% | 26.06% | 33.98% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $157,212K ÷ ($—K + $261,459K)
= 60.13%
Chewy Inc's return on total capital has shown fluctuations over the past few years. As of January 29, 2023, the return on total capital was reported at 33.98%, reflecting a strong performance in utilizing its capital efficiently. However, there was a decline in the return on total capital by January 31, 2023, to 26.06%, indicating a slight decrease in the company's capital efficiency.
By January 28, 2024, the return on total capital dropped significantly to 10.15%, which suggests a potential challenge in effectively utilizing the capital to generate returns. The return on total capital remained constant at 10.15% as of January 31, 2024, indicating a consistent performance in capital efficiency.
Notably, as of January 31, 2025, Chewy Inc's return on total capital surged to 60.13%, indicating a substantial improvement in capital efficiency and a strong performance in generating returns on its total capital.
Overall, Chewy Inc's return on total capital has shown fluctuations, but the company has demonstrated the ability to improve capital efficiency, as evidenced by the significant increase in 2025. Further monitoring of this ratio would be crucial to assess the company's ongoing performance in utilizing its capital effectively.
Peer comparison
Jan 31, 2025