Guess? Inc. (GES)
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 | 245,433 | 199,302 | 268,061 | -64,698 | 134,617 |
| Long-term debt | US$ in thousands | — | — | — | — | 247,363 |
| Total stockholders’ equity | US$ in thousands | 684,940 | 534,113 | 622,658 | 543,663 | 639,714 |
| Return on total capital | 35.83% | 37.31% | 43.05% | -11.90% | 15.18% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $245,433K ÷ ($—K + $684,940K)
= 35.83%
Guess? Inc.'s return on total capital has shown mixed performance over the past five years. In the most recent fiscal year, ending on February 3, 2024, the return on total capital was 35.83%, indicating that the company generated $0.3583 in profit for every dollar of total capital employed. This represents a slight decrease from the previous year's return of 37.31%.
In the fiscal year ending on January 29, 2022, Guess? Inc. achieved a return on total capital of 43.05%, marking a peak in performance over the analyzed period. However, there was a significant decline in the fiscal year ending on January 30, 2021, with a negative return of -11.90%, suggesting that the company experienced a loss on its total capital employed.
The return on total capital rebounded in the subsequent fiscal year ending on February 1, 2020, to 15.18%, indicating improved profitability relative to the previous year. Overall, Guess? Inc.'s return on total capital has been volatile, with fluctuations in profitability influencing its financial performance over the five-year period. Further analysis is recommended to understand the factors driving these fluctuations and to assess the company's capital allocation efficiency.