Five Below Inc (FIVE)

Quick ratio

		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	US$ in thousands	179,749	162,928	334,544	335,286	332,324	44,229	155,101	120,501	64,973	86,753	126,195	84,170	268,783	117,045	160,338	69,760	202,490	77,496	178,800	220,778
Short-term investments	US$ in thousands	280,339	0	101,813	88,241	66,845	72,722	117,315	189,140	277,141	224,563	286,929	299,289	140,928	96,749	41,670	69,220	59,229	54,072	90,325	67,875
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	715,926	758,166	649,468	618,554	602,560	639,850	630,523	594,387	586,901	613,602	501,850	465,593	435,670	496,844	366,193	363,787	351,345	397,803	305,861	320,875
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

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 has shown fluctuation over the past several quarters, ranging from a low of 0.18 to a high of 0.94. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio of 1 or higher is generally considered favorable, indicating that the company has enough liquid assets to cover its short-term liabilities.

In the most recent quarter, the quick ratio was 0.64, indicating that Five Below may have faced some challenges in meeting its short-term obligations with its readily available assets. It is important to note that a quick ratio below 1 may raise concerns about the company's liquidity position and ability to pay off its current liabilities.

It is also worth noting that the quick ratio has varied significantly over the quarters, suggesting possible fluctuations in the company's liquidity position and ability to manage its short-term financial obligations. Further analysis of the company's financial statements and operational performance may be necessary to understand the factors driving these fluctuations in the quick ratio.