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.
Peer comparison
Feb 3, 2024