Shoe Carnival Inc (SCVL)
Return on total capital
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 96,422 | 104,381 | 119,585 | 133,417 | 147,416 | 146,238 | 164,698 | 185,487 | 207,678 | 190,322 | 148,055 | 102,741 | 21,962 | 16,322 | 14,470 | 15,828 | 54,939 | 51,864 | 49,840 | 49,128 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 583,389 | 569,906 | 555,519 | 537,680 | 525,568 | 505,585 | 483,632 | 455,714 | 452,533 | 432,546 | 389,912 | 350,275 | 310,176 | 303,217 | 288,987 | 279,458 | 297,363 | 300,748 | 303,560 | 291,503 |
| Return on total capital | 16.53% | 18.32% | 21.53% | 24.81% | 28.05% | 28.92% | 34.05% | 40.70% | 45.89% | 44.00% | 37.97% | 29.33% | 7.08% | 5.38% | 5.01% | 5.66% | 18.48% | 17.25% | 16.42% | 16.85% |
February 3, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $96,422K ÷ ($—K + $583,389K)
= 16.53%
Return on total capital is a key financial ratio that measures a company's ability to generate profits from the total capital employed in the business. Shoe Carnival Inc's return on total capital has shown fluctuations over the periods analyzed.
From August 2019 to April 2022, the return on total capital steadily increased from 16.85% to 45.89%, indicating an improvement in the company's profitability relative to the capital invested. However, there was a significant drop in the ratio in July 2022 to 34.05%, followed by a sharp increase to 40.70% in October 2022. This fluctuation suggests a degree of volatility in the company's profitability during this period.
The return on total capital peaked at 45.89% in January 2022 but declined in the subsequent periods, reaching 16.53% in February 2024. This downward trend from early 2022 to early 2024 signals a decrease in the company's ability to generate returns on its total capital compared to the earlier periods.
Overall, the return on total capital for Shoe Carnival Inc has exhibited both growth and decline over the periods analyzed, indicating varying levels of efficiency in utilizing capital to generate profits. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's performance and financial health.
Peer comparison
Feb 3, 2024