Victoria's Secret & Co (VSCO)
Return on total capital
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 239,000 | 487,000 | 870,000 |
| Long-term debt | US$ in thousands | 1,120,000 | 1,271,000 | 978,000 |
| Total stockholders’ equity | US$ in thousands | 417,000 | 383,000 | 257,000 |
| Return on total capital | 15.55% | 29.44% | 70.45% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $239,000K ÷ ($1,120,000K + $417,000K)
= 15.55%
Victoria's Secret & Co's return on total capital has shown a decreasing trend over the past three years. The return on total capital was 70.45% in January 2022, significantly higher than the 29.44% in January 2023, and further decreased to 15.55% in February 2024. This decline may indicate a decrease in the company's ability to generate profits relative to its total capital employed in the business. Further investigation into the company's financial performance and capital utilization efficiency may be warranted to understand the reasons behind this decreasing trend in return on total capital.
Peer comparison
Feb 3, 2024