Movado Group Inc (MOV)
Return on total capital
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 59,850 | 71,748 | 87,573 | 107,015 | 119,899 | 131,046 | 134,277 | 128,657 | 117,016 | 104,899 | 86,757 | 54,289 | -140,747 | -158,310 | -158,307 | -128,252 | 58,796 | 67,577 | 68,885 | 59,316 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | 10,000 | 21,230 | 37,266 | 48,341 | 82,510 | 51,910 | 50,685 | 50,300 | 49,060 |
| Total stockholders’ equity | US$ in thousands | 516,798 | 500,439 | 500,784 | 491,971 | 507,606 | 478,021 | 470,836 | 459,650 | 472,808 | 454,349 | 434,567 | 426,777 | 425,264 | 389,345 | 373,671 | 369,799 | 526,537 | 520,681 | 500,304 | 489,641 |
| Return on total capital | 11.58% | 14.34% | 17.49% | 21.75% | 23.62% | 27.41% | 28.52% | 27.99% | 24.75% | 23.09% | 19.96% | 12.43% | -31.52% | -37.11% | -37.51% | -28.35% | 10.16% | 11.83% | 12.51% | 11.01% |
January 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $59,850K ÷ ($—K + $516,798K)
= 11.58%
Movado Group Inc's return on total capital has shown fluctuations over the past few quarters. The company's return on total capital was on an upward trend from April 2019 to April 2023, peaking at 28.52% in July 2022. However, there was a significant decline in the return on total capital in January 2021 and October 2021, with negative returns recorded in the subsequent quarters.
The return on total capital improved in the most recent quarters, reaching 11.58% in January 2024. This indicates that Movado Group Inc is generating a return of 11.58% for every dollar of total capital invested in the business. Overall, the company's return on total capital has been volatile, with fluctuations reflecting changes in the company's financial performance and efficiency in utilizing capital.