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.
Peer comparison
Jan 31, 2025