Abercrombie & Fitch Company (ANF)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.07 | 0.09 | 0.11 | 0.12 | 0.11 | 0.11 | 0.11 | 0.12 | 0.10 | 0.10 | 0.10 | 0.11 | 0.10 | 0.10 | 0.10 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Debt-to-capital ratio | 0.18 | 0.22 | 0.28 | 0.30 | 0.30 | 0.31 | 0.31 | 0.30 | 0.27 | 0.25 | 0.24 | 0.27 | 0.27 | 0.29 | 0.30 | 0.23 | 0.18 | 0.20 | 0.20 | 0.19 |
| 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 |
| 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 |
Abercrombie & Fitch Company's solvency ratios indicate the company's ability to meet its long-term financial obligations. Looking at the trend over the past few quarters, we observe the following:
1. Debt-to-assets ratio: This ratio has been relatively stable, ranging from 0.07 to 0.12. A lower ratio indicates that the company relies less on debt to finance its assets, suggesting a lower financial risk.
2. Debt-to-capital ratio: This ratio has been fluctuating between 0.18 and 0.30. The increasing trend suggests that the company is using more debt relative to its total capital, which may increase financial risk and interest obligations.
3. Debt-to-equity ratio: Abercrombie & Fitch Company's debt-to-equity ratio has been increasing over the past few quarters, reaching 0.42 in the most recent period. This signifies that the company is relying more on debt financing compared to equity, reflecting higher leverage and potentially increased financial risk.
4. Financial leverage ratio: The financial leverage ratio has shown variability, ranging from 3.13 to 4.17. A higher ratio indicates higher financial leverage and risk, as the company is financing a larger portion of its assets through debt.
In summary, Abercrombie & Fitch Company's solvency ratios reflect a mixed picture, with stable debt-to-assets ratio but increasing debt-to-capital and debt-to-equity ratios, as well as fluctuating financial leverage ratio. Investors and stakeholders should closely monitor these trends to assess the company's long-term financial health and risk exposure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 40.72 | 37.42 | 14.32 | 6.27 | 3.55 | 3.58 | 5.49 | 8.28 | 9.90 | 9.84 | 9.07 | 7.23 | -0.72 | -0.63 | -3.59 | -10.66 | 9.06 | -1.62 | -3.41 | -3.11 |
Abercrombie & Fitch Company's interest coverage ratio has shown varying results over the past few quarters. The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt.
The interest coverage ratio for Abercrombie & Fitch has been generally improving since May 1, 2021, when it was 7.23. It reached a peak of 40.72 on Feb 3, 2024, indicating a significant improvement in the company's ability to cover its interest expenses. However, prior to this increase, the ratio fluctuated, with the lowest point being -10.66 on May 2, 2020.
It is important to note that a higher interest coverage ratio signifies that the company is more capable of meeting its interest obligations using its earnings. This improved ratio is a positive indicator of the company's financial health and ability to service its debt.