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.