Abercrombie & Fitch Company (ANF)

Cash conversion cycle

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Days of inventory on hand (DOH)	days	107.96	115.84	137.02	119.50	107.68
Days of sales outstanding (DSO)	days	6.68	10.32	6.79	9.79	8.08
Number of days of payables	days	68.29	59.31	97.67	85.59	54.53
Cash conversion cycle	days	46.35	66.84	46.15	43.70	61.24

February 3, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 107.96 + 6.68 – 68.29
= 46.35

The cash conversion cycle of Abercrombie & Fitch Company has fluctuated over the past five years. In 2024, the company's cash conversion cycle decreased to 46.35 days, which indicates that the company has been able to efficiently manage its cash, inventory, and receivables to convert them into cash within a shorter period.

Comparing this with the previous year, in 2023, the cash conversion cycle was higher at 66.84 days, suggesting that Abercrombie & Fitch took longer to convert its investments in inventory and receivables into cash.

In 2022, the cash conversion cycle was similar to 2024, at 46.15 days, indicating effective management of working capital. The company's performance in 2021 was also favorable with a cash conversion cycle of 43.70 days, showing efficient cash management.

However, in 2020, the cash conversion cycle increased to 61.24 days, signifying that Abercrombie & Fitch took a longer time to convert its investments into cash compared to the other years.

Overall, the trend in the cash conversion cycle of Abercrombie & Fitch indicates variability in the efficiency of the company in managing its working capital over the past five years.