Five Below Inc (FIVE)

Cash ratio

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cash and cash equivalents	US$ in thousands	331,718	179,749	179,749	332,324	332,324
Short-term investments	US$ in thousands	197,073	280,339	280,339	66,845	66,845
Total current liabilities	US$ in thousands	756,442	715,926	715,926	602,560	602,560
Cash ratio		0.70	0.64	0.64	0.66	0.66

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($331,718K + $197,073K) ÷ $756,442K
= 0.70

The cash ratio for Five Below Inc has been relatively stable over the past few years, ranging between 0.64 and 0.70. This indicates that the company has a consistent ability to cover its short-term liabilities with its cash and cash equivalents. A cash ratio of 0.66 means that for every dollar of current liabilities, the company has $0.66 of cash or cash equivalents available. The slight fluctuations in the cash ratio may be a result of changes in the company's cash position or short-term liabilities. Overall, the cash ratio suggests that Five Below Inc has a healthy liquidity position and is capable of meeting its short-term financial obligations.