GURUFOCUS.COM » STOCK LIST » USA » NYSE » American Eagle Outfitters Inc (NYSE:AEO) » Definitions » Financial Strength
Switch to:

American Eagle Outfitters Financial Strength

: 6 (As of Apr. 2022)
View and export this data going back to 1994. Start your Free Trial

American Eagle Outfitters has the Financial Strength Rank of 6.

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.

American Eagle Outfitters's Interest Coverage for the quarter that ended in Apr. 2022 was 9.13. American Eagle Outfitters's debt to revenue ratio for the quarter that ended in Apr. 2022 was 0.44. As of today, American Eagle Outfitters's Altman Z-Score is 3.39.


Competitive Comparison

For the Apparel Retail subindustry, American Eagle Outfitters'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.

   

American Eagle Outfitters Financial Strength Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's Financial Strength distribution charts can be found below:

* The bar in red indicates where American Eagle Outfitters's Financial Strength falls into.



American Eagle Outfitters 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:

American Eagle Outfitters's Interest Expense for the months ended in Apr. 2022 was $-5 Mil. Its Operating Income for the months ended in Apr. 2022 was $42 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2022 was $1,557 Mil.

American Eagle Outfitters's Interest Coverage for the quarter that ended in Apr. 2022 is

Interest Coverage=-1*Operating Income (Q: Apr. 2022 )/Interest Expense (Q: Apr. 2022 )
=-1*41.902/-4.588
=9.13

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

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

American Eagle Outfitters's Debt to Revenue Ratio for the quarter that ended in Apr. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Apr. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(317.844 + 1556.758) / 4220.148
=0.44

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.

American Eagle Outfitters has a Z-score of 3.39, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.39 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.


American Eagle Outfitters  (NYSE:AEO) 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.

American Eagle Outfitters has the Financial Strength Rank of 6.


American Eagle Outfitters Financial Strength Related Terms

Thank you for viewing the detailed overview of American Eagle Outfitters's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


American Eagle Outfitters Business Description

American Eagle Outfitters logo
Traded in Other Exchanges
Address
77 Hot Metal Street, Pittsburgh, PA, USA, 15203-2329
American Eagle Outfitters Inc is an apparel and accessory retailer with company stores in U.S., Canada, Mexico, and Hong Kong. The Company leases all store premises, regional distribution facilities, some of its office space, and certain information technology and office equipment. American Eagle also has an online business that ships worldwide. It operates in two segments: American Eagle and Aerie. The majority of its revenue comes from its primary brand, American Eagle, which offers an assortment of specialty apparel and accessories for women and men. Geographically, it generates the vast majority of its revenue from the United States.
Executives
Baldwin Marisa officer: EVP - CHRO C/O ASCENA RETAIL GROUP, INC. 933 MACARTHUR BOULEVARD MAHWAH NJ 07430
Davis Steven A director 3776 SOUTH HIGH ST COLUMBUS OH 43207
Mathias Michael A. officer: EVP and CFO 77 HOT METAL STREET PITTSBURGH PA 15203
Foyle Jennifer M. officer: Global Brand President-aerie 77 HOT METAL STREET PITTSBURGH PA 15203
Henretta Deborah A director ONE RIVERFRONT PLAZA CORNING NY 14831
Siegal Stacy officer: EVP and General Counsel 800 COMMONWEALTH DRIVE SUITE 100 WARRENDALE PA 15086
Mclean Andrew J. officer: EVP & Chief Commercial Officer 77 HOT METAL STREET PITTSBURGH PA 15203
Chandrasekaran Sujatha director 77 HOT METAL STREET PITTSBURGH PA 15203
Keefer James H Jr officer: VP, Controller & CAO 77 HOT METAL STREET PITTSBURGH PA 15203
Madore Robert L officer: EVP & CFO C/O RALPH LAUREN CORPORATION 650 MADISON AVENUE NEW YORK NY 10022
Horvath Peter Z officer: Chief Global Cmrcl & Admin Off 77 HOT METAL STREET PITTSBURGH PA 15203
Kessler Charles F officer: EVP-Mdsing&Design Off-AEBrand 6301 FITCH PATH NEW ALBANY OH 43054
Nankervis Simon R. officer: EVP-Amer&GlobalCntry Licensing 77 HOT METAL STREET PITTSBURGH PA 15203
Sable David M. director 77 HOT METAL STREET PITTSBURGH PA 15203-2329
Yung Kitty officer: EVP-Asia/Pacific 77 HOT METAL STREET PITTSBURGH PA 15203-2329

American Eagle Outfitters Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)