Williams-Sonoma Inc (WSM)
Return on total capital
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,430,180 | 1,258,690 | 1,244,190 | 1,052,920 | 1,498,420 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,142,420 | 2,127,860 | 2,127,860 | 1,701,050 | 1,701,050 |
| Return on total capital | 66.76% | 59.15% | 58.47% | 61.90% | 88.09% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,430,180K ÷ ($—K + $2,142,420K)
= 66.76%
Williams-Sonoma Inc's return on total capital has shown some fluctuations over the past few years. The company's return on total capital was 88.09% as of January 29, 2023, indicating a high level of profitability relative to the total capital employed. However, there was a notable decrease in the return on total capital to 61.90% as of January 31, 2023, which may suggest a temporary dip in profitability or perhaps changes in the capital structure.
Subsequently, the return on total capital further decreased to 58.47% as of January 28, 2024, before slightly improving to 59.15% as of January 31, 2024. These fluctuations indicate that the company may be experiencing challenges in maintaining consistent profitability relative to its capital base.
As of January 31, 2025, Williams-Sonoma Inc's return on total capital increased to 66.76%, showing a positive trend towards improved profitability efficiency compared to the previous year. Overall, the company's return on total capital demonstrates varying levels of profitability over the years, highlighting the importance of closely monitoring and managing the utilization of capital resources to enhance overall financial performance.