American Eagle Outfitters Inc (AEO)
Working capital turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,328,650 | 5,261,770 | 5,261,770 | 4,989,830 | 4,989,830 |
| Total current assets | US$ in thousands | 1,354,230 | 1,433,350 | 1,433,350 | 1,100,240 | 1,100,240 |
| Total current liabilities | US$ in thousands | 882,656 | 891,172 | 891,172 | 768,948 | 768,948 |
| Working capital turnover | 11.30 | 9.70 | 9.70 | 15.06 | 15.06 |
January 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,328,650K ÷ ($1,354,230K – $882,656K)
= 11.30
American Eagle Outfitters Inc's working capital turnover has exhibited a relatively stable performance in recent years. The company achieved a working capital turnover of 15.06 in both January 28, 2023, and January 31, 2023, indicating that it effectively utilized its working capital to generate sales. However, there was a slight decline in efficiency in the following period, with the ratio dropping to 9.70 on both January 31, 2024, and February 3, 2024. This decrease suggests a potential inefficiency in managing working capital during that period.
Nonetheless, the company managed to improve its working capital turnover to 11.30 on January 31, 2025, signifying a recovery in utilizing its working capital more efficiently compared to the previous year. Overall, American Eagle Outfitters Inc has demonstrated a consistent ability to convert its working capital into sales, with fluctuations observed over the years likely influenced by internal and external factors affecting the business operations.
Peer comparison
Jan 31, 2025