Five Below Inc (FIVE)

Working capital turnover

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Revenue (ttm)	US$ in thousands	3,559,373	3,344,383	3,253,012	3,162,958	3,076,307	2,949,889	2,912,500	2,890,127	2,848,354	2,710,536	2,579,505	2,359,061	1,962,137	1,790,753	1,691,577	1,682,867	1,846,730	1,472,423	1,442,719	1,321,641
Total current assets	US$ in thousands	1,203,540	1,091,000	1,111,930	1,083,500	1,066,380	957,048	963,759	905,614	904,739	933,916	839,340	767,592	755,413	712,278	570,526	573,030	665,713	625,970	605,103	605,774
Total current liabilities	US$ in thousands	715,926	758,166	649,468	618,554	602,560	639,850	630,523	594,387	586,901	613,602	501,850	465,593	435,670	496,844	366,193	363,787	351,345	397,803	305,861	320,875
Working capital turnover		7.30	10.05	7.03	6.80	6.63	9.30	8.74	9.29	8.96	8.46	7.64	7.81	6.14	8.31	8.28	8.04	5.87	6.45	4.82	4.64

February 3, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,559,373K ÷ ($1,203,540K – $715,926K)
= 7.30

The working capital turnover for Five Below Inc has shown variability over the past 20 reporting periods. The ratio ranged from a low of 4.64 to a high of 10.05, indicating fluctuations in the efficiency with which the company is utilizing its working capital. Generally, a higher working capital turnover ratio suggests that the company is effectively leveraging its current assets to generate sales revenue.

The trend analysis reveals that there have been periods of improvement in working capital turnover, with notable peaks at 10.05 and 9.30. However, there were also declines in efficiency, as seen in the lower ratios around 4.64 and 5.87. It is important for the company to sustain or improve its working capital turnover ratio over time to ensure optimal utilization of resources and support business operations effectively.

Overall, while the working capital turnover ratio for Five Below Inc has shown fluctuations, the company should focus on managing its working capital efficiently to drive sales and improve financial performance in the future.