Five Below Inc (FIVE)

Cash ratio

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Cash and cash equivalents	US$ in thousands	331,718	169,702	209,039	96,308	179,749	179,749	162,928	162,928	334,544	334,544	335,286	335,286	332,324	332,324	44,229	44,229	155,101	155,101	120,501	64,973
Short-term investments	US$ in thousands	197,073	46,941	118,680	273,341	280,339	280,339	0	0	101,813	101,813	88,241	88,241	66,845	66,845	72,722	72,722	117,315	117,315	189,140	277,141
Total current liabilities	US$ in thousands	756,442	875,388	685,205	741,629	715,926	715,926	758,166	758,166	649,468	649,468	618,554	618,554	602,560	602,560	639,850	639,850	630,523	630,523	594,387	586,901
Cash ratio		0.70	0.25	0.48	0.50	0.64	0.64	0.21	0.21	0.67	0.67	0.68	0.68	0.66	0.66	0.18	0.18	0.43	0.43	0.52	0.58

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 of Five Below Inc has shown fluctuations over the past few years, ranging from a low of 0.18 to a high of 0.70 as of January 31, 2025. The cash ratio indicates the proportion of cash and cash equivalents to current liabilities, serving as a measure of the company's ability to cover its short-term liabilities with its available cash on hand.

The highest cash ratio of 0.70 suggests that Five Below Inc had a relatively strong liquidity position as of January 31, 2025, with ample cash reserves to meet its short-term obligations. On the other hand, the lowest cash ratio of 0.18 recorded on multiple occasions indicates a lower level of liquidity, raising concerns about the company's ability to cover its immediate financial obligations solely with its cash holdings.

Overall, it is important for investors and stakeholders to closely monitor the trend of the cash ratio over time to assess Five Below Inc's liquidity position and financial health. Fluctuations in the cash ratio can provide insights into the company's management of cash resources and its ability to meet short-term financial obligations.