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