Five Below Inc (FIVE)
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 | 385,571 | 345,043 | 379,880 | 154,803 | 217,284 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,584,960 | 1,361,930 | 1,120,280 | 881,886 | 759,778 |
| Return on total capital | 24.33% | 25.33% | 33.91% | 17.55% | 28.60% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $385,571K ÷ ($—K + $1,584,960K)
= 24.33%
The return on total capital for Five Below Inc has shown variations over the past five years, ranging from a high of 33.91% in January 2022 to a low of 17.55% in January 2021. The return on total capital indicates the efficiency of the company in generating profits from its total invested capital.
The company's return on total capital was relatively strong in January 2022, reflecting an efficient utilization of capital to generate profits. However, there was a decline in the return on total capital in the following year, indicating a decrease in the company's profitability compared to the previous year.
Overall, the return on total capital for Five Below Inc has shown fluctuations over the years, potentially influenced by changes in the company's financial performance or strategic decisions affecting capital deployment. Further analysis would be required to understand the factors driving these changes and to assess the company's long-term performance sustainability.
Peer comparison
Feb 3, 2024