Five Below Inc (FIVE)

Return on equity (ROE)

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Feb 3, 2024 Jan 31, 2024 Oct 31, 2023 Oct 28, 2023 Jul 31, 2023 Jul 29, 2023 Apr 30, 2023 Apr 29, 2023 Jan 31, 2023 Jan 28, 2023 Oct 31, 2022 Oct 29, 2022 Jul 31, 2022 Jul 30, 2022 Apr 30, 2022 Jan 31, 2022
Net income (ttm) US$ in thousands 253,611 268,353 468,865 450,459 433,586 278,222 122,858 145,742 168,626 293,111 417,596 396,264 374,932 244,956 114,980 131,552 255,602 354,454 337,287 328,746
Total stockholders’ equity US$ in thousands 1,808,330 1,615,850 1,607,740 1,584,660 1,584,960 1,584,960 1,377,920 1,377,920 1,440,150 1,440,150 1,387,300 1,387,300 1,361,930 1,361,930 1,184,490 1,184,490 1,162,580 1,162,580 1,114,940 1,120,280
ROE 14.02% 16.61% 29.16% 28.43% 27.36% 17.55% 8.92% 10.58% 11.71% 20.35% 30.10% 28.56% 27.53% 17.99% 9.71% 11.11% 21.99% 30.49% 30.25% 29.34%

January 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $253,611K ÷ $1,808,330K
= 14.02%

Five Below Inc's return on equity (ROE) has exhibited fluctuating trends over the past few years, based on the provided data. The ROE was relatively stable in the range of 20% to 30% from January 2022 to April 2023, indicating strong profitability and effective utilization of shareholders' equity. However, from July 2023 onwards, there was a noticeable decline in ROE, dropping to around 10% by October 2023.

This decline in ROE suggests that the company's ability to generate profits from shareholders' equity decreased during this period, potentially signaling challenges in maintaining profitability or efficiently managing the company's assets and liabilities. The ROE further decreased in the subsequent periods, reaching a low of 8.92% by October 2023.

The slight recovery in ROE seen in early 2024, reaching around 29%, may indicate some improvement in the company's profitability and efficiency in utilizing equity for generating returns. However, the subsequent decrease in ROE to 14.02% by January 2025 implies ongoing challenges in sustaining high profitability levels compared to previous years.

Overall, the fluctuating nature of Five Below Inc's ROE highlights the importance of closely monitoring and analyzing factors influencing profitability and efficiency in order to ensure sustainable growth and value creation for shareholders.