Abercrombie & Fitch Company (ANF)

Liquidity ratios

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
Current ratio 1.48 1.40 1.44 1.64 1.59 1.59 1.40 1.40 1.40 1.40 1.44 1.44 1.36 1.36 1.30 1.30 1.32 1.32 1.42 1.49
Quick ratio 0.79 0.63 0.70 0.94 1.01 0.93 0.63 0.73 0.66 0.78 0.58 0.72 0.57 0.69 0.28 0.39 0.39 0.47 0.55 0.81
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

Abercrombie & Fitch Company's liquidity ratios indicate the company's ability to meet its short-term obligations effectively.

- The current ratio has been generally stable over the period, fluctuating between 1.30 and 1.64. It stood at 1.48 as of January 31, 2025, showing that the company had $1.48 in current assets for every dollar of current liabilities, reflecting a healthy liquidity position.

- The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has been more volatile, ranging from 0.28 to 1.01. As of January 31, 2025, the quick ratio was 0.79, indicating that the company had $0.79 in liquid assets available to cover each dollar of current liabilities.

- The cash ratio, focusing solely on the most liquid assets such as cash and cash equivalents, showed a similar trend to the quick ratio. As of January 31, 2025, it stood at 0.79, suggesting that the company had $0.79 in cash reserves to cover each dollar of current liabilities.

Overall, Abercrombie & Fitch Company's liquidity ratios suggest that the company has maintained a reasonable ability to meet its short-term financial obligations, with a comfortable current ratio and adequate levels of liquid assets to cover its short-term liabilities. However, the fluctuation in the quick and cash ratios highlights the importance of closely monitoring the company's cash management practices and working capital efficiency.

Additional liquidity measure

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 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

The cash conversion cycle of Abercrombie & Fitch Company fluctuated over the period from January 31, 2022, to January 31, 2025.

The cash conversion cycle is a measure of how efficiently a company manages its working capital, involving the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From the data provided, the cash conversion cycle ranged from a low of 40.29 days on February 3, 2024, to a high of 190.12 days on October 31, 2022, showing significant variability in the company's cash flow management efficiency over time.

An average cash conversion cycle of around 100 days indicates that Abercrombie & Fitch Company typically takes approximately three and a half months to convert its investments in inventory and other resources into cash flow from sales.

Analyzing the trend, we observe fluctuations in the cash conversion cycle, suggesting potential challenges in managing working capital efficiently. The company should focus on streamlining its operations to reduce the cash conversion cycle and improve its cash flow management effectiveness, which is crucial for maintaining financial health and sustainability.