Five Below Inc (FIVE)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	385,571	342,898	347,709	345,126	345,043	306,850	328,365	358,522	379,880	361,912	343,712	290,686	154,803	129,296	117,732	120,619	217,284	88,731	106,468	95,145
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		24.33%	24.89%	24.14%	24.88%	25.33%	25.91%	28.24%	32.16%	33.91%	35.03%	34.29%	31.23%	17.55%	17.25%	16.26%	17.49%	28.60%	13.75%	16.33%	14.96%

February 3, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $385,571K ÷ ($—K + $1,584,960K)
= 24.33%

The return on total capital for Five Below Inc has displayed some fluctuation over the analyzed period. The ratio ranged from 24.14% to 35.03% during the past two years. In recent quarters, the return on total capital showed a decreasing trend, dropping from 28.24% to 24.33%. However, the company managed to achieve a relatively high return on total capital, with the lowest value being 13.75% in August 2019. This indicates that Five Below Inc has been effectively generating profits relative to the total capital invested in the business. The decreasing trend in the most recent quarters may warrant further investigation into the company's efficiency and profitability.