American Eagle Outfitters Inc (AEO)

Quick ratio

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cash	US$ in thousands	308,962	354,094	354,094	170,209	170,209
Short-term investments	US$ in thousands	50,000	100,000	100,000	85,249	85,249
Receivables	US$ in thousands	—	247,934	—	—	252,358
Total current liabilities	US$ in thousands	882,656	891,172	891,172	768,948	768,948
Quick ratio		0.41	0.79	0.51	0.33	0.66

January 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($308,962K + $50,000K + $—K) ÷ $882,656K
= 0.41

The quick ratio of American Eagle Outfitters Inc has shown fluctuations over the past few years. As of January 28, 2023, the quick ratio was 0.66, indicating that the company had $0.66 of liquid assets available to cover each dollar of current liabilities. By January 31, 2023, the ratio dropped to 0.33, suggesting a significant decrease in the company's ability to meet short-term obligations with its most liquid assets.

However, there was a slight improvement in the quick ratio by January 31, 2024, reaching 0.51. This improvement was further evident by February 3, 2024, with a quick ratio of 0.79, indicating that the company had strengthened its liquidity position.

Unfortunately, by January 31, 2025, the quick ratio declined to 0.41, indicating a reduction in the company's ability to promptly cover its short-term liabilities with its current liquid assets.

Overall, the quick ratio of American Eagle Outfitters Inc has displayed variability, with improvements in liquidity in some periods and decreases in others. It is important for the company to maintain a healthy quick ratio to ensure its ability to meet short-term financial obligations effectively.