American Eagle Outfitters Inc (AEO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.53 | 1.57 | 1.57 | 1.70 | 1.61 | 1.61 | 1.63 | 1.63 | 1.58 | 1.58 | 1.58 | 1.58 | 1.43 | 1.43 | 1.86 | 1.86 | 1.64 | 1.64 | 1.74 | 1.66 |
| Quick ratio | 0.41 | 0.19 | 0.24 | 0.52 | 0.79 | 0.51 | 0.29 | 0.58 | 0.23 | 0.59 | 0.17 | 0.53 | 0.33 | 0.66 | 0.12 | 0.49 | 0.14 | 0.44 | 0.31 | 0.52 |
| Cash ratio | 0.41 | 0.19 | 0.24 | 0.52 | 0.51 | 0.51 | 0.29 | 0.29 | 0.23 | 0.23 | 0.17 | 0.17 | 0.33 | 0.33 | 0.12 | 0.12 | 0.14 | 0.14 | 0.31 | 0.52 |
American Eagle Outfitters Inc's liquidity ratios demonstrate a fluctuating but generally satisfactory liquidity position over the period examined.
- The current ratio, which indicates the company's ability to meet short-term liabilities with available current assets, has varied between 1.43 and 1.86. This suggests that the company has generally had more than enough current assets to cover its short-term obligations.
- The quick ratio, a more stringent measure of liquidity, has shown greater variability ranging from 0.12 to 0.79. This indicates that the company's ability to cover its short-term liabilities with its most liquid assets (excluding inventory) has been less consistent.
- The cash ratio, which shows the proportion of cash and cash equivalents to current liabilities, has largely remained within the range of 0.12 to 0.52. While the cash ratio has shown some fluctuations, it generally indicates that American Eagle Outfitters Inc has maintained a reasonable level of cash to meet its short-term obligations.
In conclusion, while the company's liquidity ratios have fluctuated over the period, the overall trend suggests that American Eagle Outfitters Inc has maintained a satisfactory liquidity position, with sufficient current assets to cover its short-term liabilities.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle (CCC) of American Eagle Outfitters Inc has fluctuated over the periods provided in the dataset. The CCC represents the time it takes for a company to convert its resources into cash flow, reflecting the efficiency of its working capital management.
From January 31, 2022, to October 31, 2024, the company's CCC ranged between 43.48 days to 75.49 days. A lower CCC indicates that the company is able to convert its inventory into sales and then collect cash more quickly.
The shortest CCC was observed on February 3, 2024, at 43.48 days, suggesting improved efficiency in managing inventory and collecting receivables. Conversely, the longest CCC was recorded on October 29, 2022, at 75.49 days, indicating a delay in the conversion of resources into cash flow.
Overall, American Eagle Outfitters Inc has shown variability in its cash conversion cycle, with fluctuations in the efficiency of its working capital management. Further analysis would be needed to determine the factors driving these changes and whether there are opportunities for improvement in the company's cash conversion processes.