Signet Jewelers Ltd (SIG)
Return on total capital
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 110,700 | 374,400 | 378,500 | 569,600 | 621,500 | 574,100 | 606,500 | 700,700 | 464,700 | 497,000 | 557,100 | 598,200 | 901,300 | 791,700 | 725,600 | 410,600 | -57,700 | -134,900 | -207,500 | -140,200 |
| Long-term debt | US$ in thousands | 0 | 253,000 | 0 | 0 | 0 | 0 | 0 | 147,500 | 147,400 | 147,300 | 147,200 | 147,100 | 147,100 | 147,000 | 146,900 | 146,800 | 146,700 | 1,036,200 | 1,336,100 | 1,336,000 |
| Total stockholders’ equity | US$ in thousands | 1,851,800 | 1,799,000 | 1,917,200 | 2,081,800 | 2,166,500 | 1,572,200 | 1,614,100 | 1,581,500 | 1,578,600 | 1,358,100 | 1,367,900 | 1,256,800 | 1,564,000 | 1,534,600 | 1,555,500 | 1,320,600 | 1,190,300 | 915,900 | 916,400 | 983,800 |
| Return on total capital | 5.98% | 18.25% | 19.74% | 27.36% | 28.69% | 36.52% | 37.58% | 40.53% | 26.92% | 33.01% | 36.77% | 42.61% | 52.67% | 47.08% | 42.62% | 27.98% | -4.32% | -6.91% | -9.21% | -6.04% |
February 1, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $110,700K ÷ ($0K + $1,851,800K)
= 5.98%
Signet Jewelers Ltd's return on total capital has shown a fluctuating trend over the past few years based on the provided data. The return on total capital was negative for the periods up to January 2021, indicating that the company's capital utilization was not generating satisfactory returns during that time. However, there was a significant turnaround in performance starting from May 2021, with a substantial increase in the return on total capital. This positive trend continued until February 2024 when there was a slight decline in the return percentage.
From May 2021 to February 2024, Signet Jewelers Ltd experienced a notable improvement in its return on total capital, reaching a peak of 52.67% in January 2022. This strong performance suggests that the company was effectively utilizing its total capital to generate profits during this period. However, there was a slight decline in the return percentage in the subsequent quarters, ending at 5.98% in February 2025.
Overall, Signet Jewelers Ltd's return on total capital has exhibited a mix of negative and positive results, indicating fluctuations in the company's ability to generate returns from its total capital investments. The recent decline in the return percentage suggests a potential need for the company to reassess its capital allocation strategy to sustain and enhance its profitability in the future.