Five Below Inc (FIVE)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.68 | 1.44 | 1.71 | 1.75 | 1.77 | 1.50 | 1.53 | 1.52 | 1.54 | 1.52 | 1.67 | 1.65 | 1.73 | 1.43 | 1.56 | 1.58 | 1.89 | 1.57 | 1.98 | 1.89 |
| Quick ratio | 0.64 | 0.21 | 0.67 | 0.68 | 0.66 | 0.18 | 0.43 | 0.52 | 0.58 | 0.51 | 0.82 | 0.82 | 0.94 | 0.43 | 0.55 | 0.38 | 0.74 | 0.33 | 0.88 | 0.90 |
| Cash ratio | 0.64 | 0.21 | 0.67 | 0.68 | 0.66 | 0.18 | 0.43 | 0.52 | 0.58 | 0.51 | 0.82 | 0.82 | 0.94 | 0.43 | 0.55 | 0.38 | 0.74 | 0.33 | 0.88 | 0.90 |
Five Below Inc's liquidity ratios have shown some fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has been in the range of 1.43 to 1.98 over the past few quarters. While the current ratio has generally stayed above 1, indicating that the company has enough current assets to cover its current liabilities, there have been some variations in this ratio.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown significant fluctuations, ranging from 0.18 to 0.94. This implies that the company's ability to meet its short-term obligations without relying on inventory has varied widely.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also displayed fluctuations between 0.18 and 0.94. This suggests that the company's ability to cover its current liabilities with cash on hand has been inconsistent.
Overall, while Five Below Inc has generally maintained a current ratio above 1, indicating a healthy liquidity position, the significant fluctuations in quick and cash ratios may warrant further investigation into the company's short-term liquidity management.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 38.32 | 49.22 | 36.15 | 37.92 | 40.04 | 56.80 | 41.58 | 38.33 | 37.16 | 40.57 | 28.72 | 27.15 | 28.13 | 41.29 | 39.04 | 52.38 | 42.46 | 60.49 | 44.41 | 45.63 |
The cash conversion cycle (CCC) of Five Below Inc fluctuated over the periods analyzed. The CCC represents the number of days it takes for a company to convert its investments in inventory, accounts receivable, and accounts payable into cash.
From November 2, 2019, to February 3, 2024, the CCC for Five Below ranged between 27.15 days to 60.49 days. A lower CCC indicates a more efficient cash management process, while a higher CCC suggests a less efficient process.
The lowest CCC of 27.15 days occurred on July 31, 2021, indicating that the company was able to convert its investments into cash relatively quickly during that period. On the other hand, the highest CCC of 60.49 days was recorded on August 3, 2019, signifying a longer period for the company to convert its investments into cash.
Overall, fluctuations in the CCC can be influenced by factors such as changes in inventory turnover, accounts receivable collection period, and accounts payable payment period. It is essential for Five Below Inc to monitor and manage its CCC to ensure efficient cash flow operations and optimize working capital management.