Five Below Inc (FIVE)

Return on equity (ROE)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Net income	US$ in thousands	301,106	261,528	278,810	123,361	175,056
Total stockholders’ equity	US$ in thousands	1,584,960	1,361,930	1,120,280	881,886	759,778
ROE		19.00%	19.20%	24.89%	13.99%	23.04%

February 3, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $301,106K ÷ $1,584,960K
= 19.00%

Five Below Inc's return on equity (ROE) has shown some fluctuation over the past five years. In the most recent fiscal year ending on February 3, 2024, the ROE was 19.00%, slightly lower than the previous year's 19.20%. Comparing these two years, there has been a marginal decrease in ROE.

However, it is worth noting that the ROE of Five Below Inc was substantially higher at 24.89% in the fiscal year ending on January 29, 2022. This indicates that the company was more efficient in generating profits relative to its shareholders' equity in that particular year.

In contrast, the ROE was lower in the fiscal year ending on January 30, 2021, at 13.99%. There was a significant improvement in the previous year, ending on February 1, 2020, where the ROE stood at 23.04%.

Overall, the ROE of Five Below Inc has shown variability over the past five years, with fluctuations in profitability relative to shareholders' equity. Analyzing the trends in ROE can provide insights into the company's performance and efficiency in generating returns for its equity holders.