Abercrombie & Fitch Company (ANF)

Cash conversion cycle

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Days of inventory on hand (DOH)	days	118.31	107.96	107.96	115.84	115.84
Days of sales outstanding (DSO)	days	—	6.68	—	—	10.32
Number of days of payables	days	—	68.29	—	—	59.31
Cash conversion cycle	days	118.31	46.35	107.96	115.84	66.84

January 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 118.31 + — – —
= 118.31

The cash conversion cycle of Abercrombie & Fitch Company has fluctuated over the years based on the provided data.

On January 28, 2023, the company had a cash conversion cycle of 66.84 days, indicating that it took approximately 66.84 days for Abercrombie & Fitch to convert its investments in inventory and other resources into cash flows from sales.

By January 31, 2023, the cash conversion cycle increased to 115.84 days. This signifies that the company took longer to realize cash from its operating activities compared to the previous period.

On January 31, 2024, the cash conversion cycle decreased slightly to 107.96 days, showing some improvement in the company's efficiency in managing its working capital.

By February 3, 2024, there was a significant reduction in the cash conversion cycle to 46.35 days, indicating that Abercrombie & Fitch was able to more efficiently convert its investments in resources into cash during this period.

However, by January 31, 2025, the cash conversion cycle increased again to 118.31 days. This suggests that Abercrombie & Fitch experienced challenges in managing its working capital effectively, leading to a longer cash conversion cycle.

Overall, Abercrombie & Fitch Company's cash conversion cycle has shown variability over the years, with fluctuations in the time it takes to convert investments in resources into cash flows from sales. Efforts to optimize working capital management may help improve the company's cash conversion cycle in the future.