American Eagle Outfitters Inc (AEO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.61 | 1.63 | 1.58 | 1.58 | 1.43 | 1.86 | 1.64 | 1.74 | 1.66 | 2.04 | 2.08 | 1.77 | 1.69 | 1.88 | 2.35 | 1.39 | 1.33 | 1.34 | 1.46 | 1.93 |
| Quick ratio | 0.79 | 0.58 | 0.59 | 0.53 | 0.66 | 0.49 | 0.44 | 0.62 | 0.87 | 1.21 | 1.27 | 1.26 | 1.28 | 1.20 | 1.50 | 0.71 | 0.47 | 0.54 | 0.65 | 0.96 |
| 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 |
American Eagle Outfitters Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been relatively stable over the past few quarters, fluctuating between 1.43 and 2.08, which suggests the company has a healthy level of current assets to cover its current liabilities. However, the quick ratio, which excludes inventory from current assets, shows more variability, indicating potential fluctuations in the company's ability to pay off its short-term obligations without relying on inventory.
The cash ratio, which is the most stringent liquidity ratio, has also shown variability, ranging from 0.12 to 1.34. While the cash ratio is lower than the current and quick ratios, it suggests that American Eagle Outfitters has enough cash reserves to cover a portion of its current liabilities in some quarters. Overall, the company's liquidity ratios demonstrate a mixed performance, with some quarters showing stronger liquidity positions than others. Monitoring these ratios consistently will be crucial for assessing the company's short-term financial health.
Additional liquidity measure
| 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 conversion cycle | days | 43.32 | 51.29 | 48.74 | 48.71 | 43.98 | 62.55 | 52.00 | 50.60 | 43.33 | 51.51 | 36.62 | 28.56 | 33.84 | 20.92 | 30.30 | 23.76 | 35.85 | 29.29 | 28.26 | 27.85 |
The cash conversion cycle of American Eagle Outfitters Inc has shown fluctuating trends over the past few periods. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory back into cash.
In the latest period ending February 3, 2024, the cash conversion cycle was 43.32 days, representing a decrease from the prior period. This reduction indicates an improvement in the company's efficiency in managing its working capital.
Looking at the historical data, there have been variations in the cash conversion cycle over time. The cycle was relatively long in some periods, such as in July 2022 and October 2023, exceeding 50 days. On the other hand, there were periods, like in May 2020 and January 2021, when the cycle was shorter, around 20-30 days, indicating a more efficient working capital management.
Overall, American Eagle Outfitters Inc has experienced fluctuations in its cash conversion cycle, suggesting varying efficiency in managing its inventory, accounts receivable, and accounts payable. The company should continue to monitor and optimize its working capital processes to maintain a healthy cash conversion cycle and improve its overall financial performance.