Abercrombie & Fitch Company (ANF)

Working capital turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Revenue	US$ in thousands	4,280,680	3,697,750	3,712,770	3,125,380	3,623,070
Total current assets	US$ in thousands	1,537,260	1,228,020	1,507,760	1,661,630	1,264,750
Total current liabilities	US$ in thousands	966,820	902,200	1,015,240	959,399	815,354
Working capital turnover		7.50	11.35	7.54	4.45	8.06

February 3, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,280,680K ÷ ($1,537,260K – $966,820K)
= 7.50

Abercrombie & Fitch Company's working capital turnover has fluctuated over the past five years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.

In February 2024, Abercrombie & Fitch Company's working capital turnover stood at 7.50, indicating that the company generated $7.50 in sales revenue for every dollar of working capital invested during the year. This ratio decreased compared to the previous year, where it was 11.35, suggesting a decrease in the efficiency of working capital utilization.

Comparing to the two years prior to that, in January 2022, the working capital turnover ratio was 7.54 indicating a similar level of efficiency in utilizing working capital. In January 2021, the ratio was relatively lower at 4.45, implying that the company generated less sales revenue relative to its working capital investment. However, by February 2020, the working capital turnover ratio improved to 8.06, indicating better efficiency in utilizing working capital to generate sales revenue.

Overall, Abercrombie & Fitch Company has shown variability in its working capital turnover ratio over the past five years, with efficiency levels fluctuating. It is essential for the company to closely monitor and manage its working capital to ensure optimal utilization for generating sales revenue.