American Eagle Outfitters Inc (AEO)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,830,780 | 3,736,130 | 3,540,320 | 3,557,220 | 3,557,910 | 3,885,870 | 3,520,790 | 3,520,790 | 3,431,910 | 3,431,910 | 3,373,890 | 3,373,890 | 3,420,960 | 3,420,960 | 3,672,480 | 3,672,480 | 3,629,220 | 3,629,220 | 3,701,520 | 3,786,640 |
| 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 |
| Financial leverage ratio | 2.17 | 2.14 | 2.09 | 2.03 | 2.05 | 2.24 | 2.03 | 2.03 | 2.05 | 2.05 | 2.08 | 2.08 | 2.14 | 2.14 | 2.51 | 2.51 | 2.64 | 2.64 | 2.68 | 2.66 |
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 shown a fluctuating trend over the period specified in the data. The ratio started at 2.66 in January 2022 and slightly increased to 2.68 by April 2022 before decreasing to 2.51 in October 2022. This decline continued until January 2023 when it reached 2.14. Subsequently, the ratio continued to decrease gradually, hitting a low of 2.03 in October 2023.
However, there was a slight uptick in the ratio to 2.24 by January 2024, followed by a sudden drop to 2.05 in February 2024. The ratio remained relatively stable around 2.03 to 2.17 from April 2024 to January 2025.
Overall, the financial leverage ratio indicates the level of debt financing relative to equity in the company's capital structure. A higher ratio suggests a higher level of debt, which can be both advantageous as it can amplify returns, but also risky as it increases financial risk. Consequently, American Eagle Outfitters Inc should monitor its leverage ratios to ensure they are sustainable and in line with its overall financial strategy.
Peer comparison
Jan 31, 2025