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.