PVH Corp (PVH)
Return on total capital
| Feb 28, 2025 | Feb 29, 2024 | Feb 4, 2024 | Feb 28, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 795,500 | 940,300 | 940,300 | 586,300 | 477,800 |
| Long-term debt | US$ in thousands | — | — | 1,591,700 | — | 2,177,000 |
| Total stockholders’ equity | US$ in thousands | 5,140,500 | 5,118,900 | 5,118,900 | 5,012,700 | 5,012,700 |
| Return on total capital | 15.48% | 18.37% | 14.01% | 11.70% | 6.65% |
February 28, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $795,500K ÷ ($—K + $5,140,500K)
= 15.48%
PVH Corp's return on total capital has shown a positive trend over the past few years based on the provided data. The return on total capital increased from 6.65% in January 29, 2023, to 15.48% in February 28, 2025. This indicates that the company has been more efficient in generating returns from the total capital employed in its operations.
The growth in return on total capital signifies that PVH Corp is effectively utilizing its capital to generate profits. The significant increase in the return on total capital from February 4, 2024 (14.01%) to February 29, 2024 (18.37%) demonstrates a notable improvement in capital efficiency within a short timeframe.
Overall, the upward trend in the return on total capital for PVH Corp reflects positively on the company's financial performance and management's ability to optimize the use of capital resources for generating returns.
Peer comparison
Feb 28, 2025