Foot Locker Inc (FL)
Return on total capital
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 37,000 | 142,000 | -399,000 | 651,000 | 581,000 |
| Long-term debt | US$ in thousands | — | 395,000 | — | — | 395,000 |
| Total stockholders’ equity | US$ in thousands | 2,909,000 | 2,890,000 | 2,890,000 | 3,293,000 | 3,293,000 |
| Return on total capital | 1.27% | 4.32% | -13.81% | 19.77% | 15.75% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $37,000K ÷ ($—K + $2,909,000K)
= 1.27%
Based on the data provided, Foot Locker Inc's return on total capital has shown fluctuations over the past few years. The return on total capital was 15.75% as of January 28, 2023, indicating a solid performance in utilizing its capital effectively to generate profits. This increased to 19.77% by January 31, 2023, showcasing further improvement in capital efficiency.
However, there was a significant decline in the return on total capital to -13.81% by January 31, 2024. This negative return indicates that Foot Locker Inc may have faced challenges in effectively deploying its capital to generate profits during that period. The company's performance improved slightly by February 3, 2024, with a return on total capital of 4.32%.
As of January 31, 2025, Foot Locker Inc's return on total capital further decreased to 1.27%. This suggests that the company may continue to face challenges in optimizing its capital utilization to generate adequate returns for its investors. Overall, the fluctuations in the return on total capital indicate the importance for Foot Locker Inc to continuously assess and improve its capital allocation strategies to enhance profitability and shareholder value.
Peer comparison
Jan 31, 2025