American Eagle Outfitters Inc (AEO)

Cash conversion cycle

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Days of inventory on hand (DOH)	days	70.58	73.53	55.66	57.59	48.69	60.80	71.90	73.59	62.91	59.06	53.64	52.49	48.09	49.34	71.27	72.95	65.71	56.08	63.38	46.08
Days of sales outstanding (DSO)	days	—	—	—	—	15.18	—	—	18.26	—	20.38	—	17.60	—	17.59	—	19.77	—	15.47	—	—
Number of days of payables	days	—	—	—	—	20.39	—	—	28.70	—	22.13	—	17.84	—	19.76	—	17.23	—	16.21	—	—
Cash conversion cycle	days	70.58	73.53	55.66	57.59	43.48	60.80	71.90	63.15	62.91	57.32	53.64	52.25	48.09	47.17	71.27	75.49	65.71	55.34	63.38	46.08

January 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 70.58 + — – —
= 70.58

The cash conversion cycle of American Eagle Outfitters Inc has shown fluctuations over the past few years. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In January 2022, the cash conversion cycle was 46.08 days, indicating that on average it took the company 46.08 days to convert its investments into cash. The cycle then increased to 63.38 days by April 2022, showing a lengthening time period. However, it decreased to 55.34 days by July 2022 before rising again to 65.71 days in July 31, 2022.

The cycle continued to fluctuate over the next few reporting periods, with a peak of 75.49 days in October 29, 2022, and a subsequent decrease to 47.17 days by January 28, 2023. It then rose again to 62.91 days in July 31, 2023, and reached 71.90 days by October 31, 2023.

In February 3, 2024, there was a significant decrease in the cash conversion cycle to 43.48 days before increasing to 73.53 days by October 31, 2024, and then reducing to 70.58 days by January 31, 2025.

Overall, the cash conversion cycle of American Eagle Outfitters Inc has experienced variability, with periods of both increasing and decreasing efficiency in converting investments into cash. Tracking this metric over time can provide valuable insights into the company's operational efficiency and financial management.