AEO Quick Ratio Analysis

The quick ratio measures a company's ability to pay short-term debts using its most liquid assets (cash, marketable securities, receivables), and American Eagle Outfitters' current level of 0.38x means it has only $0.38 of these liquid assets for every $1 of current liabilities — a low cushion.

This sits well below the consumer cyclical sector median of 0.78x, placing the company in the 16th percentile among peers, indicating weaker short-term liquidity than 84% of comparable firms. Because the year-over-year change and quarter-over-quarter change are both listed as N/A, and the trend over the last eight quarters is also N/A, no movement data is available to assess whether the ratio is improving or deteriorating. The combination of a very low quick ratio with no trend history points to elevated liquidity risk, as the company’s current position is already tight and there is no directionality to suggest a recovery. This metric contradicts the overall NEUTRAL verdict, because such a weak liquidity standing typically introduces downside risk that a neutral rating would not normally imply.

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