Abercrombie & Fitch Company (ANF)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	78,346	96,762	112,597	106,149	104,506	108,468	79,820	88,807	69,102	83,447	87,151	107,821	83,857	89,074	88,323	88,639	80,251	92,736	98,691	82,026
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
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

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 of 1 indicates that a company's current assets, excluding inventory, are sufficient to cover its current liabilities.

Analyzing Abercrombie & Fitch Company's quick ratio over the provided periods, we observe fluctuations ranging from 0.39 to 1.24. The quick ratio was below 1 for most of the periods, suggesting that the company may have faced challenges in meeting its short-term obligations without relying on inventory.

The quick ratio improved significantly in the most recent period, standing at 1.01, indicating that Abercrombie & Fitch had an adequate level of liquid assets to cover its current liabilities without relying on inventory. This improvement may signify enhanced liquidity and financial health.

It is important to note that a quick ratio of 1 does not always indicate optimal liquidity, as it depends on industry norms and specific business requirements. Further analysis of the company's financial statements and industry benchmarks is recommended to gain a more comprehensive understanding of Abercrombie & Fitch's liquidity position.