American Eagle Outfitters Inc (AEO)

Debt-to-equity 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-equity ratio		0.00	0.01	0.24	0.30	0.00

February 3, 2024 calculation

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

The debt-to-equity ratio of American Eagle Outfitters Inc has shown a significant decline from 0.30 in January 2021 to 0.24 in January 2022, and further decreased to 0.01 in January 2023. This indicates a reduction in the company's reliance on debt to finance its operations and an improvement in its financial leverage. However, the ratio dropped to 0.00 in February 2024, suggesting that the company has either no debt or a minimal amount relative to its equity during that period. This could be seen as a positive sign of strong financial health and stability, as the company may be using more of its own equity to fund its activities. It is important to note that a debt-to-equity ratio of 0.00 may also indicate that there are no financial obligations to creditors, which could limit potential growth opportunities if there is an absence of financial leverage.