Abercrombie & Fitch Company (ANF)

Short-term

Turnover ratios

Abercrombie & Fitch Company's activity ratios reflect its efficiency in managing its assets and liabilities.

1. Inventory Turnover:
- The inventory turnover ratio has varied over the observed periods, ranging from 2.08 to 3.48.
- Generally, the company turns over its inventory about 2 to 3 times a year. A higher turnover indicates efficient inventory management.

2. Receivables Turnover:
- The receivables turnover ratio has also fluctuated, ranging from 31.73 to 54.64.
- This ratio indicates how quickly the company collects its accounts receivable. A higher turnover is favorable as it shows timely collection of funds.

3. Payables Turnover:
- Abercrombie & Fitch's payables turnover ratio ranges from 3.20 to 8.62.
- A higher payables turnover reflects that the company is paying its suppliers more quickly, which can sometimes indicate good relationships with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio has varied from 4.45 to 12.85.
- This ratio shows how effectively the company is using its working capital to generate sales. A higher ratio indicates efficient utilization of working capital.

In conclusion, Abercrombie & Fitch Company's activity ratios demonstrate different aspects of its operational efficiency in managing inventory, receivables, payables, and working capital over the analyzed periods.

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Average number of days

Abercrombie & Fitch Company's activity ratios provide insight into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH):
- The DOH has shown fluctuations over the last few reporting periods, ranging from a low of 107.68 days to a high of 175.18 days. This indicates variability in inventory management efficiency.
- A decreasing trend in DOH suggests the company is selling inventory faster, while an increasing trend may indicate excess or slow-moving inventory.

2. Days of Sales Outstanding (DSO):
- The DSO has also demonstrated variability, with values ranging from 6.68 days to 11.50 days. Lower DSO values imply faster collection of receivables, while higher values suggest delayed collections.
- A decreasing trend in DSO could indicate more efficient credit and collection policies, whereas an increasing trend may signal potential issues with customer creditworthiness.

3. Number of Days of Payables:
- The number of days of payables has fluctuated between 42.33 days and 113.98 days. Lower values indicate faster payment to suppliers, while higher values suggest a longer time taken to settle payables.
- A decreasing trend in payables days may indicate better negotiating power with suppliers, whereas an increasing trend could signal financial distress or strained supplier relationships.

Overall, Abercrombie & Fitch's activity ratios reflect fluctuations in inventory management, receivables collection, and payables management, highlighting the importance of continuous monitoring and potential adjustments to improve operational efficiency and cash flow management.

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Long-term

The long-term activity ratios of Abercrombie & Fitch Company provide insights into the efficiency with which the company utilizes its assets, particularly fixed assets, to generate revenue.

Fixed asset turnover ratio measures how effectively a company is using its fixed assets to generate sales. Over the analyzed periods, Abercrombie & Fitch Company's fixed asset turnover ratio ranged from 4.96 to 7.96. The company's fixed asset turnover has been relatively stable, with a slight increasing trend in recent periods. This indicates that Abercrombie & Fitch is efficiently utilizing its fixed assets to generate sales.

Total asset turnover ratio assesses the company's overall asset utilization efficiency in generating revenue. Abercrombie & Fitch Company's total asset turnover ratio fluctuated between 0.93 and 1.45. The ratio shows some variation over time, indicating fluctuations in the company's overall asset efficiency in generating revenue. It is worth noting that the total asset turnover ratio has shown improvement in recent periods, implying enhanced efficiency in utilizing total assets to generate sales.

In conclusion, Abercrombie & Fitch Company has displayed consistent performance in efficiently utilizing its fixed assets to generate sales and has improved its overall asset utilization efficiency over the analyzed periods. These ratios suggest that the company is effectively managing its assets to drive revenue growth and achieve its financial objectives.