American Eagle Outfitters Inc (AEO)

Working capital 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
Total current assets	US$ in thousands	1,433,350	1,100,240	1,396,920	1,522,640	1,047,930
Total current liabilities	US$ in thousands	891,172	768,948	842,871	858,482	751,756
Working capital turnover		9.70	15.06	9.04	5.66	14.55

February 3, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,261,770K ÷ ($1,433,350K – $891,172K)
= 9.70

American Eagle Outfitters Inc's working capital turnover ratio has exhibited fluctuations over the past five years. As of February 3, 2024, the ratio stands at 9.70, indicating that the company generated $9.70 in revenue for every dollar of working capital during the year. This represents a decrease from the previous year's ratio of 15.06, suggesting a less efficient utilization of working capital compared to the prior period.

Looking further back, the working capital turnover ratio was 9.04 on January 29, 2022, 5.66 on January 30, 2021, and 14.55 on February 1, 2020. These figures indicate fluctuations in the company's ability to generate revenue relative to its working capital in those respective years.

Overall, American Eagle Outfitters Inc's working capital turnover ratio has shown variability, with the latest ratio reflecting a moderate decline compared to the previous year. This metric is essential for assessing how effectively the company is using its working capital to generate sales revenue.