Five Below Inc (FIVE)

Quick ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cash	US$ in thousands	179,749	332,324	64,973	268,783	202,490
Short-term investments	US$ in thousands	280,339	66,845	277,141	140,928	59,229
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	715,926	602,560	586,901	435,670	351,345
Quick ratio		0.64	0.66	0.58	0.94	0.74

February 3, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($179,749K + $280,339K + $—K) ÷ $715,926K
= 0.64

The quick ratio of Five Below Inc, a measure of the company's ability to meet its short-term obligations with its most liquid assets, has exhibited some fluctuations over the past five years.

In the most recent fiscal year ended on February 3, 2024, the quick ratio stands at 0.64, indicating that the company had $0.64 in easily convertible assets for every $1 of current liabilities. This suggests a slight decrease in liquidity compared to the prior year.

Looking back, the quick ratio was relatively consistent around the 0.6 to 0.7 range from 2020 to 2023, showing a moderate level of liquidity. However, there was a significant increase in the ratio to 0.94 in the fiscal year ended on January 30, 2021, implying a stronger ability to cover short-term obligations with quick assets.

It is worth noting that although the quick ratio fluctuated over the years, the company generally maintained a reasonable level of liquidity, with the ratio typically above 0.5, indicating a solid ability to meet short-term financial commitments. Investors and stakeholders may continue to monitor the quick ratio trend to assess the company's liquidity position and short-term financial health.