American Eagle Outfitters Inc (AEO)

Debt-to-capital ratio

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019	Feb 2, 2019
Long-term debt	US$ in thousands	—	—	3,225	30,225	8,911	411,911	376,522	405,807	341,002	336,249	331,680	325,290	321,081	516,953	642,972	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,736,760	1,738,290	1,673,000	1,619,020	1,599,160	1,462,530	1,372,920	1,383,010	1,423,670	1,396,700	1,275,530	1,086,660	1,068,200	997,900	996,983	1,247,850	1,260,380	1,228,580	1,241,750	1,287,560
Debt-to-capital ratio		0.00	0.00	0.00	0.02	0.01	0.22	0.22	0.23	0.19	0.19	0.21	0.23	0.23	0.34	0.39	0.00	0.00	0.00	0.00	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

The debt-to-capital ratio of American Eagle Outfitters Inc has shown some fluctuation over the past several quarters. From the provided data, it can be observed that the company maintained a relatively stable debt-to-capital ratio of around 0.00 to 0.02 for the majority of the quarters. This indicates that the company had minimal to no debt relative to its capital during those periods.

However, there was a significant spike in the debt-to-capital ratio in the most recent quarters, with ratios ranging from 0.19 to 0.39. This suggests that the company has taken on more debt relative to its capital, which could indicate a shift in its financial strategy or an increase in the leverage being used to finance its operations.

Overall, it would be important to further investigate the reasons behind the recent increase in the debt-to-capital ratio to understand the implications for American Eagle Outfitters Inc's financial health and future performance.