Abercrombie & Fitch Company (ANF)

Working capital turnover

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Revenue US$ in thousands 4,948,590 4,280,680 4,280,680 3,697,750 3,697,750
Total current assets US$ in thousands 1,673,430 1,537,260 1,537,260 1,228,020 1,228,020
Total current liabilities US$ in thousands 1,126,940 966,820 966,820 902,200 902,200
Working capital turnover 9.06 7.50 7.50 11.35 11.35

January 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,948,590K ÷ ($1,673,430K – $1,126,940K)
= 9.06

The working capital turnover for Abercrombie & Fitch Company has shown relatively stable performance, with a ratio of 11.35 for both January 28 and January 31, 2023. This indicates that the company effectively utilized its working capital to generate sales during those periods.

However, there was a decline in the working capital turnover ratio to 7.50 for January 31 and February 3, 2024, suggesting a possible inefficiency in how the company managed its working capital to support its sales activities during that period.

Subsequently, the ratio improved to 9.06 for January 31, 2025, indicating a better utilization of working capital to generate sales compared to the previous year. It is essential for Abercrombie & Fitch Company to monitor and maintain an optimal level of working capital turnover to ensure efficient operations and maximize its profitability in the future.