Abercrombie & Fitch Company (ANF)

Debt-to-equity 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
Long-term debt	US$ in thousands	222,119	248,033	297,385	297,172	296,852	296,532	304,219	303,901	303,574	303,247	303,015	344,278	343,910	343,559	343,250	232,178	231,963	241,343	251,033	250,736
Total stockholders’ equity	US$ in thousands	1,035,160	866,108	768,306	701,857	694,841	646,231	661,788	695,361	826,090	908,934	956,566	941,174	936,628	849,379	805,681	790,239	1,058,810	983,512	991,977	1,094,840
Debt-to-equity ratio		0.21	0.29	0.39	0.42	0.43	0.46	0.46	0.44	0.37	0.33	0.32	0.37	0.37	0.40	0.43	0.29	0.22	0.25	0.25	0.23

February 3, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $222,119K ÷ $1,035,160K
= 0.21

The debt-to-equity ratio of Abercrombie & Fitch Company has shown some fluctuations over the past few quarters. The ratio decreased from 0.29 in October 2023 to 0.21 in February 2024, indicating that the company's level of debt relative to its equity has declined. This suggests that Abercrombie & Fitch has reduced its reliance on debt financing compared to its equity.

While there have been some fluctuations, the trend overall has shown a slight decrease in the debt-to-equity ratio since mid-2022 when the ratio peaked at 0.46. This may indicate that the company has been actively managing its debt levels or increasing its equity base during this period. The ratio has generally been hovering in the 0.2 to 0.4 range since early 2023.

A lower debt-to-equity ratio can be seen as a positive indicator as it suggests lower financial risk and a stronger equity position. However, it is essential to also consider the industry norms and overall financial health of the company to get a complete picture of Abercrombie & Fitch's financial leverage.