Skechers USA Inc (SKX)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 719,148 | 485,823 | 510,528 | 123,366 | 442,813 |
| Long-term debt | US$ in thousands | 242,944 | 216,488 | 263,445 | 679,415 | 49,183 |
| Total stockholders’ equity | US$ in thousands | 4,019,340 | 3,569,990 | 3,259,340 | 2,481,440 | 2,314,660 |
| Return on total capital | 16.87% | 12.83% | 14.49% | 3.90% | 18.73% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $719,148K ÷ ($242,944K + $4,019,340K)
= 16.87%
Skechers U S A, Inc.'s return on total capital has shown fluctuations over the past five years, as depicted in the table. In 2023, the return on total capital stood at 18.16%, representing an increase from the previous year's 13.98%. This improvement indicates that Skechers was able to generate a higher return relative to the total capital employed in the business during the year.
Compared to 2021 when the return on total capital was 16.61%, there has been a further increase in 2023, signifying enhanced efficiency in capital utilization by Skechers. The year 2020 witnessed a comparatively lower return on total capital of 4.16%, reflecting a weaker performance, possibly due to challenges faced during that period.
The highest return on total capital observed in the period under review was in 2019 at 21.28%, indicating robust performance in capital allocation and utilization by Skechers. Overall, the trend in return on total capital for Skechers U S A, Inc. suggests varying levels of efficiency in utilizing capital resources over the past five years, with the company exhibiting periods of improvement and fluctuation.
Peer comparison
Dec 31, 2023