Five Below Inc (FIVE)

Quick ratio

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cash	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
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	756,442	715,926	715,926	602,560	602,560
Quick ratio		0.70	0.64	0.64	0.66	0.66

January 31, 2025 calculation

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

The quick ratio of Five Below Inc has shown some fluctuations over the past few years. As of January 31, 2025, the quick ratio stands at 0.70, indicating that the company has $0.70 of liquid assets available to cover each dollar of current liabilities.

Although the quick ratio has slightly improved from the previous year, it still remains below the ideal ratio of 1. This suggests that the company may have difficulty meeting its short-term obligations using its most liquid assets alone.

It is important for investors and stakeholders to monitor the trend of the quick ratio over time to assess the company's liquidity position and ability to manage its short-term financial obligations effectively.