American Eagle Outfitters Inc (AEO)

Debt-to-capital ratio

		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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	3,225	—	30,225	—	8,911	—	411,911	—	376,522	—	—
Total stockholders’ equity	US$ in thousands	1,766,860	1,746,600	1,694,370	1,752,360	1,736,760	1,736,760	1,738,290	1,738,290	1,673,000	1,673,000	1,619,020	1,619,020	1,599,160	1,599,160	1,462,530	1,462,530	1,372,920	1,372,920	1,383,010	1,423,670
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.02	0.00	0.01	0.00	0.22	0.00	0.22	0.00	0.00

January 31, 2025 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,766,860K)
= 0.00

The debt-to-capital ratio of American Eagle Outfitters Inc has remained relatively low and stable over time. As of January 31, 2022, April 30, 2022, July 31, 2022, October 31, 2022, and January 31, 2023, the ratio was 0.00, indicating that the company had no debt relative to its capital during these periods.

There was a slight increase in the debt-to-capital ratio to 0.22 as of July 30, 2022, and October 29, 2022, but it returned to 0.00 by January 28, 2023. This suggests that the company may have taken on some debt temporarily but quickly reduced it.

Subsequently, the ratio remained low and stable at 0.00 from April 29, 2023, to October 31, 2024, indicating a healthy balance between debt and capital. This low ratio signifies that American Eagle Outfitters Inc may be relying more on equity financing rather than debt to fund its operations and growth.

Overall, the consistent and low debt-to-capital ratio indicates that the company has been managing its debt levels prudently, which can contribute to financial stability and reduce financial risk in the long term.