Abercrombie & Fitch Company (ANF)

Payables turnover

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Cost of revenue (ttm)	US$ in thousands	1,587,265	1,579,456	1,567,962	1,556,197	1,593,213	1,545,905	1,515,553	1,477,718	1,400,773	1,359,577	1,325,881	1,299,236	1,234,179	1,286,441	1,335,762	1,403,487	1,472,155	1,310,243	1,301,221	1,247,330
Payables	US$ in thousands	296,976	373,930	323,197	221,587	258,895	322,128	408,297	311,352	374,829	424,560	289,475	236,667	289,396	334,775	284,221	162,747	219,919	269,578	226,234	180,041
Payables turnover		5.34	4.22	4.85	7.02	6.15	4.80	3.71	4.75	3.74	3.20	4.58	5.49	4.26	3.84	4.70	8.62	6.69	4.86	5.75	6.93

February 3, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,587,265K ÷ $296,976K
= 5.34

The payables turnover ratio for Abercrombie & Fitch Company has shown fluctuations over the past 20 reporting periods. The ratio measures how efficiently the company is managing its accounts payables by determining how many times during a period its payables are paid.

Based on the data provided:
- The payables turnover ratio ranged from a low of 3.20 to a high of 8.62 over the past 20 reporting periods.
- The average payables turnover ratio for the period was approximately 5.06.
- The highest payables turnover ratio was observed on February 1, 2020, at 8.62, indicating that the company was able to pay off its payables 8.62 times during that period.
- Conversely, the lowest payables turnover ratio was seen on January 29, 2022, at 3.20, suggesting a relatively slower rate of paying off payables during that timeframe.
- Overall, the trend shows some inconsistency in the management of payables, with the company experiencing both peaks and troughs in its payables turnover ratio.

In conclusion, while the payables turnover ratio provides insight into how quickly Abercrombie & Fitch Company is settling its payables, the fluctuating nature of the ratio suggests that the company may benefit from implementing more consistent payables management practices to improve efficiency and optimize working capital.