American Eagle Outfitters Inc (AEO)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	354,094	240,940	175,315	117,841	170,209	82,133	98,214	228,775	434,770	740,668	773,994	850,477	692,356	898,787	855,769	361,930	214,514	267,166	304,671	333,330
Short-term investments	US$ in thousands	100,000	—	388	384	85,249	384	104	103	—	83,602	50,000	75,000	325,507	—	29,956	55,000	50,000	50,000	45,000	92,135
Total current liabilities	US$ in thousands	891,172	831,231	762,476	716,437	768,948	685,430	718,061	737,479	842,871	869,572	769,218	858,482	894,336	840,414	662,227	751,756	810,152	763,646	649,797	542,645
Cash ratio		0.51	0.29	0.23	0.17	0.33	0.12	0.14	0.31	0.52	0.95	1.07	1.08	1.14	1.07	1.34	0.55	0.33	0.42	0.54	0.78

February 3, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($354,094K + $100,000K) ÷ $891,172K
= 0.51

The cash ratio of American Eagle Outfitters Inc has displayed fluctuations over the past several periods. The cash ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents.

The cash ratio for American Eagle Outfitters Inc ranged from 0.12 to 1.34 over the provided periods. A higher cash ratio indicates a stronger ability to cover short-term liabilities with cash on hand.

The ratio hit its lowest point at 0.12 in October 2022, demonstrating a lower level of liquidity. Subsequently, the ratio improved significantly to 1.34 in May 2020, suggesting a substantial increase in the company's ability to cover short-term obligations with cash and cash equivalents.

However, the ratio fluctuated over time, indicating changing levels of liquidity for the company. It is essential for stakeholders to closely monitor the cash ratio to assess American Eagle Outfitters Inc's short-term liquidity position and ability to meet its financial obligations.