Five Below Inc (FIVE)

Current ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
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
Current ratio		1.68	1.77	1.54	1.73	1.89

February 3, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,203,540K ÷ $715,926K
= 1.68

The current ratio of Five Below Inc has shown fluctuations over the past five years. The current ratio indicates the company's ability to meet its short-term financial obligations with its current assets. A higher current ratio is generally considered favorable as it suggests the company has more current assets to cover its current liabilities.

In the most recent period, the current ratio of Five Below Inc stood at 1.68, which represents a decrease compared to the prior year when it was 1.77. This decline may indicate a potential weakening in the company's ability to cover its short-term liabilities with its current assets.

Looking at the trend over the past five years, the current ratio has fluctuated within a range of 1.54 to 1.89. This variability may suggest changes in the company's liquidity position and its management of current assets and liabilities over time.

It is important for investors and stakeholders to monitor changes in the current ratio of Five Below Inc to assess the company's liquidity risk and financial health. Further analysis, in conjunction with other financial metrics, would provide a more comprehensive view of the company's overall financial performance.