Skechers USA Inc (SKX)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 719,148 | 688,758 | 608,925 | 534,967 | 485,923 | 463,462 | 479,914 | 538,485 | 510,428 | 490,460 | 446,428 | 196,514 | 123,385 | 150,136 | 194,100 | 359,583 | 442,813 | 432,082 | 412,962 | 375,907 |
| Long-term debt | US$ in thousands | 242,944 | 239,590 | 236,763 | 230,275 | 216,488 | 225,505 | 253,260 | 265,305 | 263,445 | 282,760 | 268,913 | 717,595 | 679,415 | 683,611 | 680,109 | 669,152 | 49,183 | 39,773 | 100,024 | 93,755 |
| Total stockholders’ equity | US$ in thousands | 4,019,340 | 3,952,130 | 3,839,350 | 3,714,850 | 3,569,990 | 3,458,700 | 3,416,260 | 3,367,820 | 3,259,340 | 2,841,500 | 2,733,460 | 2,576,130 | 2,481,440 | 2,402,400 | 2,224,720 | 2,347,720 | 2,314,660 | 2,174,500 | 2,132,910 | 2,062,530 |
| Return on total capital | 16.87% | 16.43% | 14.94% | 13.56% | 12.83% | 12.58% | 13.08% | 14.82% | 14.49% | 15.70% | 14.87% | 5.97% | 3.90% | 4.87% | 6.68% | 11.92% | 18.73% | 19.51% | 18.49% | 17.43% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $719,148K ÷ ($242,944K + $4,019,340K)
= 16.87%
Skechers U S A, Inc. has shown a consistent performance in generating returns on total capital over the past eight quarters. The return on total capital has gradually increased from 13.98% in Q4 2022 to 18.16% in Q4 2023, indicating an improving efficiency in utilizing both debt and equity to generate profits. This trend suggests that the company has been effectively managing its capital resources to generate higher returns for its shareholders. The company's ability to maintain returns above 15% for the majority of the quarters reflects a strong operational performance and strategic capital allocation decisions. Overall, the consistent and increasing trend in the return on total capital is a positive indicator of Skechers U S A, Inc.'s financial health and efficient use of its resources to create shareholder value.
Peer comparison
Dec 31, 2023