Abercrombie & Fitch Company (ANF)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.07 | 0.00 | 0.00 | 0.09 | 0.00 | 0.11 | 0.00 | 0.12 | 0.00 | 0.11 | 0.00 | 0.11 | 0.00 | 0.11 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.18 | 0.00 | 0.00 | 0.22 | 0.00 | 0.28 | 0.00 | 0.30 | 0.00 | 0.30 | 0.00 | 0.31 | 0.00 | 0.31 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.21 | 0.00 | 0.00 | 0.29 | 0.00 | 0.39 | 0.00 | 0.42 | 0.00 | 0.43 | 0.00 | 0.46 | 0.00 | 0.46 | 0.00 | 0.00 |
| Financial leverage ratio | 2.47 | 2.62 | 2.53 | 2.75 | 2.87 | 2.87 | 3.35 | 3.35 | 3.64 | 3.64 | 3.64 | 3.64 | 3.90 | 3.90 | 4.17 | 4.17 | 4.13 | 4.13 | 3.75 | 3.56 |
Abercrombie & Fitch Company's solvency ratios indicate its ability to meet its debt obligations and manage financial leverage over time.
1. Debt-to-assets ratio: Generally, a lower debt-to-assets ratio is favorable as it indicates lower financial risk. Abercrombie & Fitch maintained a consistently low debt-to-assets ratio throughout the periods examined, with occasional slight increases. As of January 31, 2025, the ratio stood at 0.00, suggesting that the company's assets are primarily financed through equity rather than debt.
2. Debt-to-capital ratio: This ratio measures the proportion of debt in the company's capital structure. Abercrombie & Fitch exhibited a similar trend of maintaining a low debt-to-capital ratio over the periods, with the highest ratio recorded at 0.31 on July 30, 2022. Subsequently, the ratio decreased to 0.00 by January 31, 2025, indicating a reduction in debt relative to total capital.
3. Debt-to-equity ratio: The debt-to-equity ratio reflects the extent to which Abercrombie & Fitch relies on debt financing. The company showed a decreasing trend in the ratio over time, starting at 0.46 on July 30, 2022, and reaching 0.00 by January 31, 2025. This suggests a shift towards a more equity-funded capital structure and reduced financial risk.
4. Financial leverage ratio: The financial leverage ratio provides insights into the company's overall debt levels in relation to its equity. Abercrombie & Fitch experienced a declining trend in the financial leverage ratio, indicating a reduction in financial risk and leverage. The ratio decreased from 4.13 on July 30, 2022, to 2.47 on January 31, 2025, reflecting a stronger financial position and lower dependency on debt financing.
Overall, Abercrombie & Fitch's solvency ratios demonstrate a prudent approach to managing debt and financial leverage, with a consistent effort to maintain a strong financial position by reducing reliance on debt financing over the periods analyzed.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 64.65 | 40.49 | 31.78 | 26.10 | 31.88 | 24.98 | 25.27 | 20.92 | 12.67 | 12.96 | 11.07 | 10.39 | 8.23 | 4.80 | 1.22 | 0.19 | 2.45 | 5.91 | 8.63 | 11.66 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
Analyzing Abercrombie & Fitch Company's interest coverage based on the provided data shows fluctuations over time. As of January 31, 2022, the interest coverage ratio was 11.66, indicating a comfortable ability to cover interest payments. However, the ratio declined to 5.91 by July 30, 2022, and further decreased significantly to 0.19 by October 29, 2022, signaling potential difficulties in meeting interest obligations.
Subsequent periods saw improvements in the interest coverage ratio, with notable increases by January 31, 2023 (8.23), April 30, 2023 (11.07), and July 29, 2023 (12.96). The ratio continued to rise, reaching a peak of 64.65 on January 31, 2025, indicating a substantial improvement in the company's ability to cover its interest expenses.
Overall, the trend in Abercrombie & Fitch Company's interest coverage ratio shows variability over time, reflecting fluctuations in the company's earnings and its ability to manage debt obligations. Investors and stakeholders should closely monitor these ratios to assess the company's financial health and debt servicing capacity.