American Eagle Outfitters Inc (AEO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.11 | 0.00 | 0.10 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.00 | 0.01 | 0.00 | 0.22 | 0.00 | 0.22 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.00 | 0.01 | 0.00 | 0.28 | 0.00 | 0.27 | 0.00 | 0.00 |
| 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 |
American Eagle Outfitters Inc has shown a consistent trend of low solvency risk based on its solvency ratios.
The Debt-to-assets ratio has mostly remained at very low levels, with occasional slight increases but still well below 1. This indicates that the company has very little debt relative to its total assets, which is a positive sign of financial health and stability.
Similarly, the Debt-to-capital ratio has also been low, indicating that the company relies more on equity financing rather than debt to fund its operations. This suggests a conservative capital structure and lower financial risk.
The Debt-to-equity ratio also reflects a low level of debt compared to equity, which further supports the company's financial stability and ability to weather economic downturns.
The Financial leverage ratio shows a slightly fluctuating trend but generally remains at moderate levels. This ratio indicates the proportion of a company's assets that are financed by debt as opposed to equity. While the ratio has increased slightly over the years, it is still within reasonable limits.
Overall, based on these solvency ratios, American Eagle Outfitters Inc appears to have a solid financial position with low debt levels and a conservative approach to financing, which bodes well for its long-term sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 106.71 | 74.80 | 22.33 | 20.24 | 55.58 | 56.48 | 201.60 | — | 60.84 | 43.48 | 19.75 | 20.50 | 28.65 | 18.41 | 3.04 | 1.90 | 1.14 | 2.59 | 13.41 | 16.71 |
The interest coverage ratio is a metric used to assess a company's ability to cover its interest expenses with its operating income. A higher ratio indicates that the company is more capable of meeting its interest obligations.
Based on the data provided, we can observe fluctuations in American Eagle Outfitters Inc.'s interest coverage ratio over time. In January 2022, the interest coverage ratio stood at a comfortable 16.71, indicating that the company's operating income was around 16.71 times its interest expenses.
However, the interest coverage ratio started to decline in the following quarters, dropping to 2.59 in July 2022 and further decreasing to 1.14 by the end of the same year. These lower ratios suggest that the company's ability to cover its interest payments deteriorated significantly during that period.
Subsequently, there was some recovery in the interest coverage ratio, with notable improvements seen in January 2023 (28.65) and July 2023 (60.84), indicating a stronger ability to meet interest obligations. The peak interest coverage ratio of 201.60 in October 2023 signifies a substantial improvement in the company's financial health at that point.
However, the interest coverage ratio exhibited some volatility in the following quarters, showing fluctuations between 20 and 75, with the ratio reaching 106.71 in January 2025. This suggests that American Eagle Outfitters Inc. had varying degrees of success in covering its interest expenses during that period.
Overall, the trend in American Eagle Outfitters Inc.'s interest coverage ratio reflects periods of both strength and weakness in its ability to cover interest payments with operating income, highlighting the importance of monitoring this ratio to assess the company's financial stability.