Designer Brands Inc (DBI)
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 | 73,036 | 174,633 | 205,223 | -584,615 | 127,299 |
| Long-term debt | US$ in thousands | — | — | 225,536 | 272,319 | — |
| Total stockholders’ equity | US$ in thousands | 362,508 | 436,056 | 412,396 | -3,286 | -2,495 |
| Return on total capital | 20.15% | 40.05% | 32.17% | -217.30% | — |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $73,036K ÷ ($—K + $362,508K)
= 20.15%
Designer Brands Inc's return on total capital has fluctuated significantly over the past five years. In the most recent fiscal year ending on February 3, 2024, the return on total capital stood at 20.15%, showing a decrease from the previous year's figure of 40.05%, indicating a decline in the company's ability to generate returns from its total capital employed.
The return on total capital for the fiscal year ending January 29, 2022, was 32.17%, which was a robust performance compared to the negative return of -217.30% in the preceding year. This negative figure in fiscal year 2021 implies that the company's capital employed resulted in losses rather than profits, indicating potential issues with capital allocation or operational efficiency during that period.
Overall, the return on total capital for Designer Brands Inc has been volatile, reflecting fluctuations in the company's profitability and efficiency in generating returns from its total capital base. Tracking this metric over time can provide insights into the company's financial performance and capital utilization strategies.
Peer comparison
Feb 3, 2024