American Eagle Outfitters Inc (AEO)

Debt-to-capital ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Long-term debt	US$ in thousands	—	8,911	341,002	325,290	—
Total stockholders’ equity	US$ in thousands	1,736,760	1,599,160	1,423,670	1,086,660	1,247,850
Debt-to-capital ratio		0.00	0.01	0.19	0.23	0.00

February 3, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,736,760K)
= 0.00

American Eagle Outfitters Inc's debt-to-capital ratio has shown variability over the past five years. As of February 3, 2024, the company reported a debt-to-capital ratio of 0.00, indicating that it had minimal debt relative to its total capital. This suggests a strong financial position with a low reliance on debt financing. In comparison, the ratio was slightly higher at 0.01 as of January 28, 2023, reaffirming the company's conservative approach to debt management.

However, there was a notable increase in the debt-to-capital ratio to 0.19 as of January 29, 2022, followed by a slight further increase to 0.23 as of January 30, 2021. These higher ratios suggest that American Eagle Outfitters Inc had taken on more debt relative to its total capital during these years, potentially indicating increased leverage and financial risk.

Interestingly, the debt-to-capital ratio was at 0.00 as of February 1, 2020, indicating a debt-free capital structure at that point in time. This suggests that the company may have actively reduced its debt levels or increased its equity capital during that period.

Overall, the trend in American Eagle Outfitters Inc's debt-to-capital ratio demonstrates fluctuations in the company's debt management strategy over the years, with periods of low and high debt levels relative to its capital base.