Abercrombie & Fitch Company (ANF)

Cash ratio

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Cash and cash equivalents	US$ in thousands	900,884	649,489	617,339	446,952	517,602	257,332	369,957	468,378	823,139	865,622	921,504	909,008	1,104,860	812,881	766,721	703,989	671,267	410,775	499,757	586,133
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	966,820	1,027,140	936,480	769,461	902,200	935,492	959,268	853,032	1,015,240	1,029,420	887,179	816,995	959,399	953,583	920,990	973,951	815,354	837,334	790,176	714,505
Cash ratio		0.93	0.63	0.66	0.58	0.57	0.28	0.39	0.55	0.81	0.84	1.04	1.11	1.15	0.85	0.83	0.72	0.82	0.49	0.63	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 shown some fluctuations over the past few quarters. The cash ratio measures the firm's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term obligations.

Looking at the trend, we observe that the cash ratio has varied between 0.28 to 1.15 over the past two years. The ratio was relatively low in the early part of the period, reaching a low point of 0.28 in October 2022. However, starting from January 2023, the ratio showed an increasing trend, reaching its peak at 1.15 in January 2021.

In general, a cash ratio above 1 is considered healthy, indicating that the company can cover all its short-term liabilities with its cash and cash equivalents. Abercrombie & Fitch Company's cash ratio has mostly been above 0.5, suggesting a reasonable ability to cover its short-term obligations with cash on hand.

It is essential for investors and stakeholders to monitor the cash ratio over time to assess the company's liquidity position and its ability to meet its short-term financial obligations.