American Eagle Outfitters Inc (AEO)

Current ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
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
Current ratio		1.61	1.43	1.66	1.77	1.39

February 3, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,433,350K ÷ $891,172K
= 1.61

The current ratio of American Eagle Outfitters Inc has fluctuated over the past five years, ranging from 1.39 in 2020 to 1.77 in 2021. The current ratio indicates the company's ability to cover its short-term obligations with its current assets.

In 2024, American Eagle Outfitters Inc has a current ratio of 1.61, suggesting that the company has $1.61 in current assets for every $1 in current liabilities. This indicates that the company has slightly improved its liquidity position compared to the previous year, where the current ratio was 1.43.

While the current ratio has shown some volatility over the years, it is important to note that a current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as a positive sign of financial health. However, it is also essential to consider other factors such as industry norms and the company's specific circumstances when analyzing the current ratio in isolation.