Abercrombie & Fitch Company (ANF)
Financial leverage ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,299,890 | 2,974,230 | 2,974,230 | 2,713,100 | 2,713,100 |
| Total stockholders’ equity | US$ in thousands | 1,335,630 | 1,035,160 | 1,035,160 | 694,841 | 694,841 |
| Financial leverage ratio | 2.47 | 2.87 | 2.87 | 3.90 | 3.90 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,299,890K ÷ $1,335,630K
= 2.47
The financial leverage ratio of Abercrombie & Fitch Company has shown a decreasing trend over the years. From 3.90 in January 2023 and remaining constant at 3.90 in January 2024, it decreased to 2.87 in January and February 2024. By January 2025, the financial leverage ratio further dropped to 2.47.
This declining trend indicates that Abercrombie & Fitch has been relying less on debt financing compared to its equity. A lower financial leverage ratio suggests that the company is less dependent on debt to finance its operations and has a stronger equity position. This can be seen as a positive sign as lower leverage ratios generally imply lower financial risk and greater financial stability. However, it's important to consider the specific circumstances of the company and industry when interpreting the significance of changes in financial leverage ratios.
Peer comparison
Jan 31, 2025