Signet Jewelers Ltd (SIG)
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 | 621,500 | 464,700 | 901,300 | -57,700 | 165,300 |
| Long-term debt | US$ in thousands | 0 | 147,400 | 147,100 | 146,700 | 515,900 |
| Total stockholders’ equity | US$ in thousands | 2,166,500 | 1,578,600 | 1,564,000 | 1,190,300 | 1,222,600 |
| Return on total capital | 28.69% | 26.92% | 52.67% | -4.32% | 9.51% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $621,500K ÷ ($0K + $2,166,500K)
= 28.69%
Signet Jewelers Ltd's return on total capital has fluctuated over the past five years. In the most recent fiscal year ending on February 3, 2024, the return on total capital was at 28.69%, showing an increase compared to the previous year's 26.92%. However, it still remains below the high return of 52.67% reported in January 29, 2022. This significant drop in return on total capital in the fiscal year ending on January 30, 2021, when it turned negative at -4.32%, indicates potential issues with the efficient allocation of capital. The return on total capital then recovered to 9.51% in the fiscal year ending on February 1, 2020.
Overall, Signet Jewelers Ltd has shown variability in its return on total capital in recent years, with fluctuations that may suggest changing operational efficiencies or capital structure strategies. Monitoring this ratio over time can provide insights into the company's ability to generate returns from its total capital base.