Abercrombie & Fitch Company (ANF)

Financial leverage 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
Total assets	US$ in thousands	2,974,230	2,897,650	2,796,710	2,558,080	2,713,100	2,693,990	2,734,090	2,607,300	2,939,490	3,112,530	3,055,390	3,070,550	3,314,900	3,276,960	3,308,810	3,291,830	3,549,660	3,486,000	3,407,000	3,422,970
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
Financial leverage ratio		2.87	3.35	3.64	3.64	3.90	4.17	4.13	3.75	3.56	3.42	3.19	3.26	3.54	3.86	4.11	4.17	3.35	3.54	3.43	3.13

February 3, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,974,230K ÷ $1,035,160K
= 2.87

The financial leverage ratio of Abercrombie & Fitch Company has exhibited fluctuations over the past few quarters, ranging from 2.87 to 4.17. This ratio measures the extent to which the company relies on debt to finance its operations and investments. A higher ratio indicates a higher level of debt relative to equity in the company's capital structure.

From the data provided, it can be observed that the financial leverage ratio has generally been on an upward trend, reaching peaks of 4.17 in multiple quarters. This suggests an increased reliance on debt financing, which could potentially amplify returns for shareholders during favorable economic conditions but also increase financial risk during challenging times.

It is important for investors and stakeholders to closely monitor the financial leverage ratio of Abercrombie & Fitch Company to assess the company's solvency and risk levels. A sustained high ratio may indicate potential financial distress or limitations in the company's ability to meet its debt obligations. Conversely, a decreasing ratio may signify a shift towards a more conservative capital structure.

Overall, the trend and level of Abercrombie & Fitch Company's financial leverage ratio indicate the company's strategy in balancing debt and equity to support its growth and operations.