Urban Outfitters Inc (URBN)
Return on total capital
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 510,842 | 428,349 | 408,636 | 395,599 | 336,898 | 294,821 | 167,955 | 73,609 | 52,999 | 71,975 | 156,515 | 234,941 | 263,108 | 248,637 | 280,493 | 233,734 | 6,918 | 135,249 | 35,751 | -30,740 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,471,500 | 2,352,920 | 2,241,430 | 2,162,330 | 2,112,540 | 2,046,560 | 1,967,390 | 1,850,680 | 1,792,680 | 1,738,390 | 1,707,190 | 1,695,920 | 1,745,740 | 1,746,730 | 1,669,420 | 1,534,510 | 1,477,360 | 1,431,320 | 1,350,590 | 1,298,110 |
| Return on total capital | 20.67% | 18.20% | 18.23% | 18.30% | 15.95% | 14.41% | 8.54% | 3.98% | 2.96% | 4.14% | 9.17% | 13.85% | 15.07% | 14.23% | 16.80% | 15.23% | 0.47% | 9.45% | 2.65% | -2.37% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $510,842K ÷ ($—K + $2,471,500K)
= 20.67%
Based on the historical data provided for Urban Outfitters Inc's return on total capital, we can observe fluctuations in the company's performance over time. The return on total capital is a key financial ratio that indicates how well a company is generating returns from all its invested capital.
From April 2020 to January 2021, Urban Outfitters Inc experienced a mixed performance with negative returns in April 2020, followed by slight improvements in subsequent periods. The company showed a significant increase in return on total capital in April 2021, reaching 15.23%, and continued to demonstrate strong performance over the next few quarters, with returns above 15% during July 2021 to July 2024.
In general, Urban Outfitters Inc's return on total capital has shown a positive trend from 2021 to early 2025, indicating that the company has been effectively utilizing its capital to generate profitable returns. However, it is important to note the slight decline in returns towards the end of 2024 and early 2025, which could be a point of concern regarding the company's capital efficiency.
Overall, Urban Outfitters Inc's return on total capital highlights its ability to generate profits relative to the total capital invested in the business, reflecting the company's operational efficiency and financial performance over the analyzed periods. It is essential for investors and stakeholders to continue monitoring this ratio to assess the company's ability to create value and manage its capital effectively.
Peer comparison
Jan 31, 2025