Urban Outfitters Inc (URBN)

Return on total capital

Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 389,269 222,594 405,735 6,918 240,922
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 2,112,540 1,792,680 1,745,740 1,477,360 1,455,360
Return on total capital 18.43% 12.42% 23.24% 0.47% 16.55%

January 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $389,269K ÷ ($—K + $2,112,540K)
= 18.43%

Urban Outfitters Inc's return on total capital has exhibited fluctuations over the past five years. In fiscal year 2022, the company reported a return on total capital of 23.24%, indicating a strong performance in generating earnings relative to the total capital employed. This was a notable improvement compared to the previous fiscal year where the return on total capital was 12.42%.

However, in fiscal year 2023, there was a decrease in the return on total capital to 12.42%, suggesting a decline in the company's efficiency in utilizing its total capital to generate profits. This was followed by a significant improvement in fiscal year 2024, with the return on total capital increasing to 18.43%.

It is worth noting that in fiscal years 2020 and 2021, the return on total capital was 16.55% and 0.47% respectively. The low return in 2021 may indicate challenges faced by the company in efficiently deploying its capital to generate returns.

Overall, Urban Outfitters Inc's return on total capital has shown variability but has generally demonstrated the ability to generate returns on its total capital, with fluctuations likely reflecting changes in the company's operational efficiency and profitability over the years.


Peer comparison

Jan 31, 2024