Five Below Inc (FIVE)
Working capital turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,559,370 | 3,076,310 | 2,848,350 | 1,962,140 | 1,846,730 |
| Total current assets | US$ in thousands | 1,203,540 | 1,066,380 | 904,739 | 755,413 | 665,713 |
| Total current liabilities | US$ in thousands | 715,926 | 602,560 | 586,901 | 435,670 | 351,345 |
| Working capital turnover | 7.30 | 6.63 | 8.96 | 6.14 | 5.87 |
February 3, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,559,370K ÷ ($1,203,540K – $715,926K)
= 7.30
Working capital turnover is a financial ratio that measures how efficiently a company is using its working capital to generate sales revenue. A higher working capital turnover ratio indicates that a company is effectively utilizing its current assets to support sales.
Analyzing the historical trend of working capital turnover for Five Below Inc, we observe fluctuations in the ratio over the past five years.
In the fiscal year ending February 3, 2024, the working capital turnover ratio was 7.30, representing an increase compared to the previous year. This suggests that Five Below Inc improved its efficiency in utilizing its current assets to generate sales revenue.
Similarly, in the fiscal year ending January 29, 2022, the working capital turnover ratio was 8.96, indicating a significant improvement in efficiency compared to the previous years. This could be a result of better management of working capital and effective utilization of resources.
On the other hand, in the fiscal year ending January 30, 2021, the working capital turnover ratio decreased to 6.14, reflecting a potential decline in efficiency in utilizing working capital to support sales.
Overall, the trend in Five Below Inc's working capital turnover ratio shows variations over the years, with some fluctuations in efficiency in utilizing working capital. It is essential for the company to continue monitoring and managing its working capital effectively to support its sales growth and overall financial performance.
Peer comparison
Feb 3, 2024