American Eagle Outfitters Inc (AEO)

Financial leverage ratio

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Total assets US$ in thousands 3,830,780 3,557,910 3,557,910 3,420,960 3,420,960
Total stockholders’ equity US$ in thousands 1,766,860 1,736,760 1,736,760 1,599,160 1,599,160
Financial leverage ratio 2.17 2.05 2.05 2.14 2.14

January 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,830,780K ÷ $1,766,860K
= 2.17

The financial leverage ratio of American Eagle Outfitters Inc has remained relatively stable over the past few years, ranging from 2.05 to 2.17. This ratio indicates that the company relies on a combination of debt and equity to finance its operations and investments. A ratio of 2.14 suggests that for every dollar of equity, the company has $2.14 of debt. Overall, the consistent nature of the financial leverage ratio suggests that American Eagle Outfitters Inc has maintained a balanced capital structure, although the slight fluctuations over time may reflect changing financial strategies or market conditions.