Williams-Sonoma Inc (WSM)
Return on total capital
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,244,193 | 1,255,889 | 1,280,445 | 1,374,418 | 1,498,422 | 1,553,207 | 1,543,841 | 1,501,420 | 1,453,116 | 1,330,631 | 1,274,968 | 1,137,229 | 910,697 | 712,296 | 539,583 | 440,387 | 465,874 | 463,041 | 455,534 | 443,535 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | 0 | 0 | 0 | 0 | 299,173 | 298,995 | 299,868 | — | 299,769 | 299,719 | 299,670 |
| Total stockholders’ equity | US$ in thousands | 2,127,860 | 1,813,230 | 1,620,960 | 1,466,820 | 1,701,050 | 1,412,930 | 1,278,280 | 1,309,740 | 1,664,210 | 1,543,370 | 1,526,720 | 1,447,300 | 1,651,180 | 1,401,900 | 1,332,920 | 1,218,930 | 1,235,860 | 1,131,890 | 1,121,600 | 1,121,770 |
| Return on total capital | 58.47% | 69.26% | 78.99% | 93.70% | 88.09% | 109.93% | 120.77% | 114.63% | 87.32% | 86.22% | 83.51% | 78.58% | 55.15% | 41.87% | 33.06% | 29.00% | 37.70% | 32.34% | 32.05% | 31.20% |
January 28, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,244,193K ÷ ($—K + $2,127,860K)
= 58.47%
Williams-Sonoma Inc's return on total capital has displayed fluctuations over the past several periods. The company's return on total capital peaked at 120.77% in July 2022 and has since varied between 29.00% and 93.70%. Overall, the trend indicates significant variability in the company's ability to generate returns on its total capital employed. It is essential for stakeholders to monitor this metric closely to gauge the efficiency and profitability of Williams-Sonoma's capital utilization over time.