American Eagle Outfitters Inc (AEO)

Receivables turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Revenue	US$ in thousands	5,261,770	4,989,830	5,010,780	3,759,110	4,308,210
Receivables	US$ in thousands	247,934	252,358	296,493	159,339	119,064
Receivables turnover		21.22	19.77	16.90	23.59	36.18

February 3, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $5,261,770K ÷ $247,934K
= 21.22

The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. In the case of American Eagle Outfitters Inc, the trend in the receivables turnover ratio over the past five years shows some fluctuations.

In 2024, the receivables turnover ratio was 21.22, indicating that American Eagle Outfitters Inc collected its accounts receivable approximately 21 times during the year. This is an improvement compared to the previous year where the ratio was 19.77.

In 2022 and 2021, the receivables turnover ratios were 16.90 and 23.59, respectively. The decrease in 2022 may indicate that the company took longer to collect payments from its customers, while the increase in 2021 suggests improved efficiency in receivables collection.

The highest receivables turnover ratio in the past five years was in 2020 at 36.18, indicating that American Eagle Outfitters Inc was very efficient in collecting payments from customers during that year.

Overall, the receivables turnover ratio of American Eagle Outfitters Inc has shown variable performance over the years, with some fluctuations in efficiency in collecting payments from customers. Monitoring this ratio can provide insights into the company's cash flow management and credit policies.