Five Below Inc (FIVE)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	301,106	270,227	271,779	266,288	261,528	230,404	238,435	261,932	278,810	262,551	258,799	223,539	123,361	109,798	99,562	98,812	175,056	78,198	93,072	86,045
Total stockholders’ equity	US$ in thousands	1,584,960	1,377,920	1,440,150	1,387,300	1,361,930	1,184,490	1,162,580	1,114,940	1,120,280	1,033,250	1,002,460	930,642	881,886	749,542	723,955	689,765	759,778	645,391	651,936	635,999
ROE		19.00%	19.61%	18.87%	19.19%	19.20%	19.45%	20.51%	23.49%	24.89%	25.41%	25.82%	24.02%	13.99%	14.65%	13.75%	14.33%	23.04%	12.12%	14.28%	13.53%

February 3, 2024 calculation

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

Five Below Inc has shown a relatively stable return on equity (ROE) over the past few quarters, ranging from around 18% to 25%. The ROE indicates how effectively the company is utilizing its shareholders' equity to generate profit.

During the most recent quarter, the ROE was at 19.00%, which is consistent with the previous quarters in terms of profitability. The company's ability to maintain ROE above 15% signifies efficient management of assets in generating profits for shareholders.

The increasing trend seen in the earlier quarters, peaking at 25.82% in the third quarter of 2021, suggests improved profitability and efficient use of equity during that time. However, the ROE has slightly moderated in the latest quarters, indicating potential challenges or changes in the company's financial performance.

It would be beneficial for stakeholders to monitor future ROE trends to assess the company's profitability and efficiency in generating returns for shareholders. Additionally, comparing Five Below Inc's ROE with industry benchmarks and competitors can provide further insights into its financial performance and competitiveness in the market.