Five Below Inc (FIVE)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	327,747	345,495	614,543	589,157	569,130	359,282	149,434	175,723	202,012	369,187	536,362	514,884	493,406	323,648	153,890	175,285	279,329	410,894	397,332	397,452
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		18.12%	21.38%	38.22%	37.18%	35.91%	22.67%	10.84%	12.75%	14.03%	25.64%	38.66%	37.11%	36.23%	23.76%	12.99%	14.80%	24.03%	35.34%	35.64%	35.48%

January 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $327,747K ÷ ($—K + $1,808,330K)
= 18.12%

Five Below Inc's return on total capital has shown some fluctuations over the provided period. The ratio was consistently strong in the range of high 30% levels, reaching a peak of 38.66% in April 30, 2023. However, there were noticeable declines in the subsequent periods with the ratio dropping to as low as 10.84% in October 31, 2023. The return on total capital rebounded to around 38% in July 31, 2024, before decreasing to 18.12% by January 31, 2025. Overall, the company's return on total capital demonstrates variability, indicating the need for further analysis to understand the underlying factors influencing these fluctuations.