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Abercrombie & Fitch Co (Abercrombie & Fitch Co) Financial Strength : 7 (As of Jan. 2024)


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What is Abercrombie & Fitch Co Financial Strength?

Abercrombie & Fitch Co has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Abercrombie & Fitch Co's Interest Coverage for the quarter that ended in Jan. 2024 was 32.64. Abercrombie & Fitch Co's debt to revenue ratio for the quarter that ended in Jan. 2024 was 0.18. As of today, Abercrombie & Fitch Co's Altman Z-Score is 5.32.


Competitive Comparison of Abercrombie & Fitch Co's Financial Strength

For the Apparel Retail subindustry, Abercrombie & Fitch Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Abercrombie & Fitch Co's Financial Strength Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Abercrombie & Fitch Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Abercrombie & Fitch Co's Financial Strength falls into.



Abercrombie & Fitch Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Abercrombie & Fitch Co's Interest Expense for the months ended in Jan. 2024 was $-7 Mil. Its Operating Income for the months ended in Jan. 2024 was $218 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $869 Mil.

Abercrombie & Fitch Co's Interest Coverage for the quarter that ended in Jan. 2024 is

Interest Coverage=-1*Operating Income (Q: Jan. 2024 )/Interest Expense (Q: Jan. 2024 )
=-1*218.365/-6.691
=32.64

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Abercrombie & Fitch Co's Debt to Revenue Ratio for the quarter that ended in Jan. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jan. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(179.625 + 868.743) / 5811.628
=0.18

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Abercrombie & Fitch Co has a Z-score of 5.32, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.32 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Abercrombie & Fitch Co  (NYSE:ANF) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Abercrombie & Fitch Co has the Financial Strength Rank of 7.


Abercrombie & Fitch Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Abercrombie & Fitch Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Abercrombie & Fitch Co (Abercrombie & Fitch Co) Business Description

Traded in Other Exchanges
Address
6301 Fitch Path, New Albany, OH, USA, 43054
Abercrombie & Fitch Co is a specialty retailer that sells casual clothing, personal-care products, and accessories for men, women, and children. It sells direct to consumer through its stores and websites, which include the Abercrombie & Fitch, Abercrombie kids, and Hollister brands. Most stores are in the United States, but the company does have many stores in Canada, Europe, and Asia. All stores are leased. Abercrombie ships to well over 100 countries via its websites. The company sources its merchandise from dozens of vendors that are primarily located in Asia and Central America. Abercrombie has two distribution centers in Ohio to support its North American operations. It uses third-party distributors for sales in Europe and Asia.
Executives
Scott D. Lipesky officer: SVP and CFO 6301 FITCH PATH, NEW ALBANY OH 43054
Kristin A. Scott officer: Brand President-Hollister Co. 6301 FITCH PATH, NEW ALBANY OH 43054
Jay Rust officer: EVP Human Resources 6301 FITCH PATH, NEW ALBANY OH 43054
Samir Desai officer: EVP;Chief Digital&Tech Officer 6301 FITCH PATH, NEW ALBANY OH 43054
Sarah M. Gallagher director 6301 FITCH PATH, NEW ALBANY OH 43054
Kenneth B. Robinson director 6301 FITCH PATH, NEW ALBANY OH 43054
Gregory J Henchel officer: SVP, Gen Cnsl & Secy C/O HSN, INC., 1 HSN DRIVE, ST. PETERSBURG FL 33729
Fran Horowitz-bonadies officer: President of Hollister brand 6301 FITCH PATH, NEW ALBANY OH 43054
Terry Lee Burman director CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
Helen Vaid director 600 WEST CHICAGO AVE., STE 400, CHICAGO IL 60654
Kerrii B Anderson director WENDY'S INTERNATIONAL, INC, 4288 WEST DUBLIN-GRANVILLE RD., DUBLIN OH 43017
Suzanne M Coulter director 6301 FITCH PATH, NEW ALBANY OH 43054
Charles R Perrin director C/O AVON PRODUCS INC, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105-0196
Holly May officer: SVP, Chief HR Officer 6301 FITCH PATH, NEW ALBANY OH 43054
James A Goldman director