The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Abercrombie & Fitch Co's current ratio for the quarter that ended in Oct. 2024 was 1.40.
Abercrombie & Fitch Co has a current ratio of 1.40. It generally indicates good short-term financial strength.
The historical rank and industry rank for Abercrombie & Fitch Co's Current Ratio or its related term are showing as below:
STU:AFT'
s Current Ratio Range Over the Past 10 Years
Min: 1.3 Med: 1.67 Max: 2.54
Current: 1.4
During the past 13 years, Abercrombie & Fitch Co's highest Current Ratio was 2.54. The lowest was 1.30. And the median was 1.67.
STU:AFT's Current Ratio is ranked worse than 55.44% of 1122
companies
in the Retail - Cyclical industry
Industry Median: 1.545
vs STU:AFT: 1.40
Abercrombie & Fitch Co Current Ratio Historical Data
* 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.
Competitive Comparison of Abercrombie & Fitch Co's Current Ratio
For the Apparel Retail subindustry, Abercrombie & Fitch Co's Current Ratio, along with its competitors' market caps and Current Ratio 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 Current Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Abercrombie & Fitch Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Abercrombie & Fitch Co's Current Ratio falls into.
Abercrombie & Fitch Co Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Abercrombie & Fitch Co's Current Ratio for the fiscal year that ended in Jan. 2024 is calculated as
* 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 (STU:AFT) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Abercrombie & Fitch Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Abercrombie & Fitch Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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 consumers 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.
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