Abercrombie & Fitch Company (ANF)

Quick ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cash	US$ in thousands	900,884	517,602	823,139	1,104,860	671,267
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	78,346	104,506	69,102	83,857	80,251
Total current liabilities	US$ in thousands	966,820	902,200	1,015,240	959,399	815,354
Quick ratio		1.01	0.69	0.88	1.24	0.92

February 3, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($900,884K + $—K + $78,346K) ÷ $966,820K
= 1.01

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.

Based on the data provided, Abercrombie & Fitch Company's quick ratio has fluctuated over the past five years.

As of Feb 3, 2024, the quick ratio stands at 1.01, which implies that the company has just enough liquid assets to cover its current liabilities. This indicates a relatively healthy liquidity position compared to the previous year.

In contrast, on Jan 28, 2023, the quick ratio was lower at 0.69, suggesting a potential liquidity strain as the company may have had difficulties meeting its short-term obligations with its available liquid assets.

On Jan 29, 2022, the quick ratio improved to 0.88, indicating a better liquidity position compared to the previous year. This improvement suggests that Abercrombie & Fitch Company may have increased its liquid assets relative to its current liabilities.

On Jan 30, 2021, the quick ratio was 1.24, reflecting a strong liquidity position where the company had more than enough liquid assets to cover its short-term obligations. This indicates a prudent approach to managing liquidity and short-term solvency.

Lastly, on Feb 1, 2020, Abercrombie & Fitch Company's quick ratio was 0.92, suggesting a moderate ability to meet short-term obligations with its available liquid assets.

Overall, while the quick ratio of Abercrombie & Fitch Company has shown variability over the past five years, the current ratio of 1.01 as of Feb 3, 2024, indicates a relatively healthy liquidity position, providing some assurance that the company can meet its short-term obligations.