Abercrombie & Fitch Company (ANF)

Cash conversion cycle

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Feb 3, 2024 Jan 31, 2024 Oct 31, 2023 Oct 28, 2023 Jul 31, 2023 Jul 29, 2023 Apr 30, 2023 Apr 29, 2023 Jan 31, 2023 Jan 28, 2023 Oct 31, 2022 Oct 29, 2022 Jul 31, 2022 Jul 30, 2022 Apr 30, 2022 Jan 31, 2022
Days of inventory on hand (DOH) days 118.31 148.50 108.27 91.47 94.14 105.01 150.47 155.27 133.00 117.35 95.28 93.48 103.59 114.15 190.12 189.59 166.37 154.67 123.64 118.02
Days of sales outstanding (DSO) days — — — — 5.70 — — 9.39 — 10.79 — 9.41 — 10.13 — 11.99 — 7.39 — —
Number of days of payables days — — — — 59.55 — — 97.57 — 76.86 — 46.26 — 58.45 — 82.31 — 89.19 — —
Cash conversion cycle days 118.31 148.50 108.27 91.47 40.29 105.01 150.47 67.08 133.00 51.29 95.28 56.64 103.59 65.83 190.12 119.27 166.37 72.87 123.64 118.02

January 31, 2025 calculation

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

The cash conversion cycle (CCC) is a critical metric that indicates how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Abercrombie & Fitch Company, the CCC has fluctuated over the period covered by the data.

From January 31, 2022, to October 31, 2024, Abercrombie & Fitch's CCC varied from as low as 40.29 days on February 3, 2024, to as high as 190.12 days on October 31, 2022. This indicates fluctuations in the efficiency of Abercrombie & Fitch's working capital management during this period.

Moreover, the company experienced improvements in its cash conversion cycle from July 30, 2022 (72.87 days) to July 29, 2023 (51.29 days), showcasing effective management in converting inventory into cash during this period.

However, there were instances of increased CCC, such as from January 31, 2023 (103.59 days) to October 31, 2023 (150.47 days), indicating a delay in converting inventory into cash and potentially signaling inefficiencies in the business operations.

Overall, analyzing Abercrombie & Fitch's CCC over the specified period highlights fluctuations in the efficiency of its working capital management, indicating the need for continuous monitoring and improvement in this area to optimize cash flows and enhance overall financial performance.