Abercrombie & Fitch Company (ANF)

Cash ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cash and cash equivalents	US$ in thousands	900,884	517,602	823,139	1,104,860	671,267
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	966,820	902,200	1,015,240	959,399	815,354
Cash ratio		0.93	0.57	0.81	1.15	0.82

February 3, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($900,884K + $—K) ÷ $966,820K
= 0.93

The cash ratio of Abercrombie & Fitch Company has fluctuated over the past five fiscal years, ranging from 0.57 to 1.15. The ratio indicates the company's ability to cover its short-term liabilities with the cash and cash equivalents on hand. A higher cash ratio typically suggests a stronger liquidity position, as the company has more cash to meet its current obligations.

In this case:
- The cash ratio was lowest in Jan 28, 2023, at 0.57, indicating a lower ability to cover short-term liabilities with available cash.
- The ratio improved in the following years, reaching its peak on Jan 30, 2021, at 1.15, reflecting a more robust liquidity position.
- As of Feb 3, 2024, the cash ratio stands at 0.93, showing a moderate level of liquidity compared to the previous years but still indicating the company's ability to meet short-term obligations with its cash reserves.

Overall, the trend in Abercrombie & Fitch's cash ratio suggests fluctuations in its liquidity position over the years, with varying levels of readiness to cover immediate financial responsibilities using its cash resources.