Abercrombie & Fitch Company (ANF)

Working capital 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
Revenue (ttm)	US$ in thousands	4,280,679	4,027,579	3,851,233	3,720,979	3,697,747	3,659,287	3,684,363	3,744,122	3,712,765	3,673,455	3,587,948	3,421,426	3,125,380	3,187,890	3,231,709	3,374,459	3,623,072	3,299,716	3,278,658	3,168,479
Total current assets	US$ in thousands	1,537,260	1,441,400	1,311,260	1,108,590	1,228,020	1,220,360	1,262,690	1,212,870	1,507,760	1,604,200	1,501,650	1,484,190	1,661,630	1,521,280	1,383,440	1,286,630	1,264,750	1,180,670	1,172,140	1,172,310
Total current liabilities	US$ in thousands	966,820	1,027,140	936,480	769,461	902,200	935,492	959,268	853,032	1,015,240	1,029,420	887,179	816,995	959,399	953,583	920,990	973,951	815,354	837,334	790,176	714,505
Working capital turnover		7.50	9.72	10.28	10.97	11.35	12.85	12.14	10.41	7.54	6.39	5.84	5.13	4.45	5.62	6.99	10.79	8.06	9.61	8.58	6.92

February 3, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,280,679K ÷ ($1,537,260K – $966,820K)
= 7.50

The working capital turnover ratio for Abercrombie & Fitch Company has shown fluctuations over the periods indicated. The ratio measures how efficiently the company is utilizing its working capital to generate revenue. Higher turnover ratios generally indicate that the company is effectively managing its working capital.

Looking at the trend over the past 20 periods, we can see that the working capital turnover ratio has generally been on a declining trend. This suggests that Abercrombie & Fitch may be becoming less efficient in utilizing its working capital to generate sales.

The highest working capital turnover ratio was observed at 12.85 on October 29, 2022, indicating that the company generated $12.85 in revenue for every $1 of working capital during that period. Conversely, the lowest ratio of 4.45 was recorded on January 30, 2021, reflecting a decline in efficiency.

Overall, Abercrombie & Fitch should focus on optimizing its working capital management strategies to improve its efficiency in converting working capital into revenue, thereby enhancing its financial performance and profitability.