Abercrombie & Fitch Company (ANF)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	772,727	683,089	738,402	864,195	900,884	900,884	649,489	649,489	617,339	617,339	446,952	446,952	517,602	517,602	257,332	257,332	369,957	369,957	468,378	823,139
Short-term investments	US$ in thousands	116,221	55,790	—	—	—	0	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	1,126,940	1,182,090	1,051,660	919,699	966,820	966,820	1,027,140	1,027,140	936,480	936,480	769,461	769,461	902,200	902,200	935,492	935,492	959,268	959,268	853,032	1,015,240
Cash ratio		0.79	0.63	0.70	0.94	0.93	0.93	0.63	0.63	0.66	0.66	0.58	0.58	0.57	0.57	0.28	0.28	0.39	0.39	0.55	0.81

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($772,727K + $116,221K) ÷ $1,126,940K
= 0.79

The cash ratio is a financial metric used to evaluate a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates that a company has more liquid assets available to meet its short-term obligations.

Analyzing the cash ratio of Abercrombie & Fitch Company over the specified period reveals fluctuations in the company's ability to cover its short-term liabilities with cash. The cash ratio ranged from as low as 0.28 in October 2022 to as high as 0.94 in April 2024.

The trend in the cash ratio indicates some volatility, with fluctuations observed throughout different periods. This suggests that Abercrombie & Fitch's liquidity position varied over time. The company seemed to have higher levels of cash relative to its short-term liabilities in certain periods, indicating a stronger liquidity position.

Overall, while the cash ratio of Abercrombie & Fitch fluctuated over the period under review, it generally remained at levels that suggest the company had sufficient liquidity to cover its short-term obligations. It is important for investors and stakeholders to monitor the trend in the cash ratio to assess the company's liquidity position and its ability to meet its short-term financial commitments effectively.