American Eagle Outfitters Inc (AEO)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,557,910 | 3,420,960 | 3,786,640 | 3,434,810 | 3,328,680 |
| Total stockholders’ equity | US$ in thousands | 1,736,760 | 1,599,160 | 1,423,670 | 1,086,660 | 1,247,850 |
| Financial leverage ratio | 2.05 | 2.14 | 2.66 | 3.16 | 2.67 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,557,910K ÷ $1,736,760K
= 2.05
The financial leverage ratio of American Eagle Outfitters Inc has shown a declining trend over the past five years, indicating an improvement in the company's financial leverage. The ratio decreased from 3.16 in January 2021 to 2.05 in February 2024, signifying a decrease in the company's reliance on debt to finance its operations and investments. This reduction in financial leverage suggests that the company has been able to pay off debt, strengthen its financial position, and potentially reduce its financial risk. Overall, the decreasing trend in the financial leverage ratio reflects a positive development in American Eagle Outfitters Inc's capital structure and financial health.
Peer comparison
Feb 3, 2024