American Eagle Outfitters Inc (AEO)

American Eagle Outfitters Inc's solvency ratios demonstrate a strong financial position with consistently low debt levels relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 over the years, indicating that the company has no significant debt obligations in relation to its total assets, capital, and equity. This suggests that American Eagle Outfitters is not heavily reliant on borrowing to finance its operations and expansion.

Furthermore, the Financial leverage ratio has been relatively stable, ranging from 2.05 to 2.17 over the years. This indicates that the company's capital structure is moderately leveraged, with a reasonable level of debt to support its operations. Overall, these solvency ratios reflect American Eagle Outfitters' solid financial health and ability to manage its debt effectively without being overly burdened by financial obligations.

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Coverage ratios

The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). Looking at the data for American Eagle Outfitters Inc, we can see fluctuations in the interest coverage ratio over the past few years.

- In January 28, 2023, the interest coverage ratio was 3.13, indicating that the company generated enough earnings to cover its interest obligations 3.13 times over.
- By January 31, 2023, the interest coverage ratio decreased to 2.43, suggesting a slight decrease in the company's ability to cover its interest expenses with its operating earnings.
- However, there was a significant improvement in the interest coverage ratio by January 31, 2024, reaching 204.27. This sharp increase indicates a substantial increase in the company's ability to cover its interest costs.
- This trend continued into February 3, 2024, with the interest coverage ratio at 188.74, maintaining a strong ability to meet its interest payments.
- By January 31, 2025, the interest coverage ratio decreased to 57.26, indicating a decline in the company's ability to cover its interest expenses compared to the previous year.

Overall, the interest coverage ratio for American Eagle Outfitters Inc has shown fluctuations over the years, with some periods of significant improvement and others showing a decline. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to meet its interest obligations and manage its debt effectively.