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Five Below (STU:6F1) Return-on-Tangible-Equity : 53.80% (As of Jan. 2024)


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What is Five Below Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Five Below's annualized net income for the quarter that ended in Jan. 2024 was €742 Mil. Five Below's average shareholder tangible equity for the quarter that ended in Jan. 2024 was €1,380 Mil. Therefore, Five Below's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2024 was 53.80%.

The historical rank and industry rank for Five Below's Return-on-Tangible-Equity or its related term are showing as below:

STU:6F1' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.03   Med: 25.71   Max: 32.99
Current: 21.05

During the past 13 years, Five Below's highest Return-on-Tangible-Equity was 32.99%. The lowest was 15.03%. And the median was 25.71%.

STU:6F1's Return-on-Tangible-Equity is ranked better than
76.43% of 1048 companies
in the Retail - Cyclical industry
Industry Median: 7.285 vs STU:6F1: 21.05

Five Below Return-on-Tangible-Equity Historical Data

The historical data trend for Five Below's Return-on-Tangible-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Five Below Return-on-Tangible-Equity Chart

Five Below Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.79 14.38 28.75 21.53 20.33

Five Below Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 51.57 10.81 13.19 4.24 53.80

Competitive Comparison of Five Below's Return-on-Tangible-Equity

For the Specialty Retail subindustry, Five Below's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Five Below's Return-on-Tangible-Equity Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Five Below's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Five Below's Return-on-Tangible-Equity falls into.



Five Below Return-on-Tangible-Equity Calculation

Five Below's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jan. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jan. 2024 )  (A: Jan. 2023 )(A: Jan. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jan. 2024 )  (A: Jan. 2023 )(A: Jan. 2024 )
=276.415/( (1263.87+1454.99 )/ 2 )
=276.415/1359.43
=20.33 %

Five Below's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jan. 2024 )  (Q: Oct. 2023 )(Q: Jan. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jan. 2024 )  (Q: Oct. 2023 )(Q: Jan. 2024 )
=742.476/( (1304.895+1454.99)/ 2 )
=742.476/1379.9425
=53.80 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jan. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Five Below  (STU:6F1) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Five Below Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Five Below's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Five Below (STU:6F1) Business Description

Traded in Other Exchanges
Address
701 Market Street, Suite 300, Philadelphia, PA, USA, 19106
Five Below is a value-oriented retailer that operated 1,340 stores in the United States as of the end of fiscal 2022. Catering to teen and preteen consumers, its stores feature a wide variety of merchandise, the vast majority of which is priced below $6. The assortment focuses on discretionary items in several categories, particularly leisure (such as sporting goods, toys, and electronics; 48% of fiscal 2022 sales), fashion and home (for example, beauty products and accessories, home goods, and storage solutions; 29% of fiscal 2022 sales), and party and snack (including seasonal goods, candy, and beverages; 23% of fiscal 2022 sales). The chain had stores in 42 states as of the end of fiscal 2022.

Five Below (STU:6F1) Headlines

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