American Eagle Outfitters Inc (AEO)
Cash conversion cycle
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 71.73 | 44.89 | 72.24 | 65.82 | 42.57 |
| Days of sales outstanding (DSO) | days | — | 17.20 | — | — | 18.46 |
| Number of days of payables | days | — | 18.80 | — | — | 17.05 |
| Cash conversion cycle | days | 71.73 | 43.29 | 72.24 | 65.82 | 43.98 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 71.73 + — – —
= 71.73
The cash conversion cycle of American Eagle Outfitters Inc varied over the period analyzed. In January 2023, the company's cash conversion cycle was 43.98 days, indicating that it took approximately this amount of time to convert its investments in inventory and other resources into cash from sales. By January 31, 2023, the cash conversion cycle increased to 65.82 days, suggesting a slower turnover of cash within the company.
Subsequently, in January 31, 2024, the cash conversion cycle further extended to 72.24 days, signifying a potential increase in the time taken to convert investments into cash. However, there was a notable improvement by February 3, 2024, with the cycle decreasing significantly to 43.29 days, indicating a faster conversion of resources into cash.
As of January 31, 2025, the cash conversion cycle was 71.73 days, which denotes a longer cycle compared to previous periods. Overall, the fluctuation in the cash conversion cycle may indicate changes in the company's efficiency in managing its working capital and operations. Potential reasons for variations could include inventory management practices, sales trends, or payment terms with suppliers and customers.
Peer comparison
Jan 31, 2025