Abercrombie & Fitch Company (ANF)

Liquidity ratios

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
Current ratio 1.59 1.40 1.40 1.44 1.36 1.30 1.32 1.42 1.49 1.56 1.69 1.82 1.73 1.60 1.50 1.32 1.55 1.41 1.48 1.64
Quick ratio 1.01 0.73 0.78 0.72 0.69 0.39 0.47 0.65 0.88 0.92 1.14 1.24 1.24 0.95 0.93 0.81 0.92 0.60 0.76 0.94
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

The liquidity ratios of Abercrombie & Fitch Company over the past several periods demonstrate the company's ability to meet its short-term obligations and manage its cash effectively.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 1, indicating a healthy liquidity position. The current ratio has fluctuated over time, with an average of around 1.50. This suggests that Abercrombie & Fitch has a comfortable buffer to meet its current liabilities.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. While the quick ratio has shown more volatility compared to the current ratio, it has generally been lower, averaging around 0.80. The decreasing trend in the quick ratio may indicate a tightening liquidity position, although the ratio has remained above 1 in some periods, indicating a sufficient level of liquid assets to cover short-term obligations.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also varied significantly over time. Despite this volatility, the cash ratio has generally been above 0.50, with an average of approximately 0.75. This suggests that Abercrombie & Fitch maintains a reasonable level of cash reserves to meet its immediate payment needs.

Overall, Abercrombie & Fitch's liquidity ratios indicate that the company has maintained a relatively stable liquidity position over the analyzed periods, with a sufficient level of current assets to cover its short-term liabilities. However, the decreasing trend in the quick ratio and the fluctuation in the cash ratio warrant continued monitoring to ensure the company's liquidity remains at a healthy level.

Additional liquidity measure

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 conversion cycle days 46.35 59.87 50.31 63.47 66.84 109.95 80.09 70.69 46.15 40.28 43.59 54.19 43.70 70.00 56.16 78.21 61.24 99.77 84.16 83.28

The cash conversion cycle of Abercrombie & Fitch Company fluctuated over the past 20 reporting periods. The company's cash conversion cycle ranged from a low of 40.28 days to a high of 109.95 days, indicating variability in its efficiency in managing cash flows from operations, inventory, and receivables.

A shorter cash conversion cycle suggests that Abercrombie & Fitch is efficiently managing its working capital, translating inventory and receivables into cash quickly. On the other hand, a longer cycle can indicate potential issues such as slow inventory turnover, delays in collecting receivables, or inefficient use of cash resources.

Analyzing the trend of the cash conversion cycle over time can provide insights into the company's operational efficiency and liquidity management. For Abercrombie & Fitch, it is important to closely monitor and manage its working capital components to optimize cash flows and enhance overall financial performance.