American Eagle Outfitters Inc (AEO)

Receivables turnover

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019	Feb 2, 2019
Revenue (ttm)	US$ in thousands	5,261,780	5,139,060	5,078,580	5,015,720	4,989,830	4,941,580	4,975,080	5,031,220	5,268,470	4,792,150	4,401,580	3,759,112	3,781,452	3,816,242	3,973,612	4,308,210	4,237,780	4,175,080	4,099,053	4,035,724
Receivables	US$ in thousands	247,934	239,374	271,333	259,074	252,358	250,879	220,803	230,469	296,493	228,461	155,361	159,339	124,560	107,243	106,751	119,064	112,304	98,604	73,836	93,477
Receivables turnover		21.22	21.47	18.72	19.36	19.77	19.70	22.53	21.83	17.77	20.98	28.33	23.59	30.36	35.58	37.22	36.18	37.73	42.34	55.52	43.17

February 3, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,261,780K ÷ $247,934K
= 21.22

The receivables turnover ratio for American Eagle Outfitters Inc has shown fluctuations over the periods analyzed. The ratio indicates how efficiently the company is collecting outstanding receivables from its customers.

From February 2019 to February 2023, the receivables turnover ratio ranged between 18.72 and 28.33, with a general trend of showing a stable performance in terms of collecting receivables efficiently. However, significant improvements were observed in the latter part of 2023 and early 2024, with the ratio surpassing 30 and reaching as high as 42.34 to 55.52, suggesting an enhanced efficiency in collecting outstanding payments from customers.

The significant increase in the receivables turnover ratio towards the end of the period implies that American Eagle Outfitters Inc has been successful in managing its accounts receivables effectively. This improvement in collection efficiency can be attributed to effective credit policies, prompt invoicing, and a focus on reducing the average collection period. It indicates that the company is managing its accounts receivable more efficiently and converting credit sales into cash more quickly.

Overall, the trend in the receivables turnover ratio suggests that American Eagle Outfitters Inc has been successful in streamlining its accounts receivable process and maintaining a strong collection cycle, which is a positive indicator of the company's financial health and operational efficiency.