Skechers USA Inc (SKX)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 904,257 | 869,046 | 848,805 | 860,007 | 784,786 | 741,130 | 657,918 | 594,343 | 546,670 | 553,095 | 569,371 | 616,423 | 598,187 | 562,844 | 508,723 | 252,793 | 139,935 | 176,298 | 231,588 | 397,389 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,277,300 | 4,359,010 | 4,221,280 | 4,146,080 | 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 |
| Return on total capital | 21.14% | 19.94% | 20.11% | 20.74% | 19.53% | 18.75% | 17.14% | 16.00% | 15.31% | 15.99% | 16.67% | 18.30% | 18.35% | 19.81% | 18.61% | 9.81% | 5.64% | 7.34% | 10.41% | 16.93% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $904,257K ÷ ($—K + $4,277,300K)
= 21.14%
Skechers USA Inc's return on total capital has shown fluctuations over the past few years. The ratio was 16.93% as of March 31, 2020, indicating that the company generated a return of 16.93% on the total capital employed in its operations. Subsequently, the return on total capital decreased to 10.41% by June 30, 2020, and further dropped to 5.64% as of December 31, 2020.
However, there was a notable improvement in the return on total capital performance in the following periods. By September 30, 2021, the ratio had increased to 19.81%, showcasing a significant recovery in the company's capital efficiency. This positive trend continued through the end of 2024, with the return on total capital reaching 21.14% as of December 31, 2024.
Overall, the return on total capital for Skechers USA Inc has shown variability over time, with ups and downs reflecting changes in the company's capital utilization and operational efficiency. The increasing trend in recent periods indicates improvements in the company's ability to generate returns from the total capital employed in its business activities.
Peer comparison
Dec 31, 2024