Williams-Sonoma Inc (WSM)
Return on total capital
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,464,528 | 1,393,967 | 1,531,415 | 1,556,576 | 1,547,825 | 1,359,793 | 1,173,250 | 1,057,650 | 1,212,360 | 1,410,599 | 1,419,593 | 1,559,749 | 1,455,483 | 1,309,177 | 1,247,527 | 1,375,335 | 1,534,386 | 1,487,154 | 1,591,362 | 1,394,237 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,142,420 | 1,906,610 | 2,250,230 | 2,209,560 | 2,127,860 | 2,127,860 | 1,813,230 | 1,813,230 | 1,620,960 | 1,620,960 | 1,466,820 | 1,701,050 | 1,701,050 | 1,412,930 | 1,412,930 | 1,278,280 | 1,309,740 | 1,309,740 | 1,664,210 | 1,664,210 |
| Return on total capital | 68.36% | 73.11% | 68.06% | 70.45% | 72.74% | 63.90% | 64.70% | 58.33% | 74.79% | 87.02% | 96.78% | 91.69% | 85.56% | 92.66% | 88.29% | 107.59% | 117.15% | 113.55% | 95.62% | 83.78% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,464,528K ÷ ($—K + $2,142,420K)
= 68.36%
Williams-Sonoma Inc's return on total capital has shown fluctuations over the past few years. The ratio ranged from a high of 117.15% on May 1, 2022, to a low of 58.33% on October 29, 2023. Despite the variability, the company generally maintained a return on total capital above 60% during this period, indicating efficient capital utilization and profitability. However, there was a gradual decline in the ratio towards the end of the analyzed period, with the ratio standing at 68.36% on January 31, 2025, suggesting a potential shift in the efficiency of capital allocation. Further analysis and monitoring of this trend may be necessary to understand the factors driving the fluctuations in the return on total capital.