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.
Peer comparison
Feb 3, 2024