Ollie's Bargain Outlet Hldg (OLLI)

Short-term

Turnover ratios

Ollie's Bargain Outlet Hldg's activity ratios provide insights into how efficiently the company manages its resources to generate sales and collections, as well as pay its suppliers. Here is the analysis based on the data provided:

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. Ollie's Bargain Outlet Hldg's inventory turnover has shown fluctuation over the years, ranging from a low of 2.46 to a high of 3.71. A higher turnover indicates efficient management of inventory, but the variation may imply changes in sales patterns or inventory management.

2. Receivables Turnover: The receivables turnover ratio reflects how quickly a company collects payments from its customers. Ollie's Bargain Outlet Hldg's receivables turnover data is limited, with only two data points available. The values of 769.62 and 945.88 indicate a high frequency of collection, suggesting that the company efficiently converts sales into cash from customers.

3. Payables Turnover: The payables turnover ratio demonstrates how efficiently a company manages its supplier payments. Ollie's Bargain Outlet Hldg's payables turnover data is also limited, with just two data points. The values are 18.80 and 14.64, indicating that the company takes a relatively longer time to settle its payables. A lower turnover may suggest favorable credit terms with suppliers or inventory management practices to delay payments.

4. Working Capital Turnover: The working capital turnover ratio assesses the efficiency of utilizing working capital to generate sales. Ollie's Bargain Outlet Hldg's working capital turnover has been relatively stable over the years, ranging from 3.29 to 3.78. The consistent turnover implies that the company is effectively utilizing its working capital to support sales activities and generate revenue.

In summary, Ollie's Bargain Outlet Hldg exhibits varying levels of efficiency in managing its inventories, receivables, payables, and working capital. The company's high receivables turnover and stable working capital turnover ratios indicate effective management, while the fluctuating inventory turnover and limited payables turnover data suggest potential areas for further optimization in operational efficiency.

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Average number of days

The Days of Inventory on Hand (DOH) for Ollie's Bargain Outlet Holdings has shown fluctuation over the years. In January 2023, the company held inventory for an average of 101.26 days, which increased substantially to 146.68 days by January 31, 2023. However, by February 3, 2024, the DOH decreased to 98.47 days before rising again to 148.59 days by January 31, 2025. These fluctuations may indicate varying efficiency in managing inventory levels.

The Days of Sales Outstanding (DSO) figures show that in January 28, 2023, Ollie's Bargain Outlet Holdings collected sales revenue within 0.47 days, which is a very short collection period. Subsequently, the DSO data for January 31, 2023, January 31, 2024, and January 31, 2025 are not available (marked as "— days"), making it challenging to assess the company's sales collection efficiency during those periods. By February 3, 2024, the company improved its sales collection efficiency to 0.39 days.

The Number of Days of Payables data for Ollie's Bargain Outlet Holdings indicate the company's payment cycle for its obligations. In January 28, 2023, the company took around 19.41 days to pay its payables. The data for January 31, 2023, January 31, 2024, and January 31, 2025 are unavailable (marked as "— days"), making it difficult to analyze the changes in the payment cycle during those periods. By February 3, 2024, the number of days to payables increased to 24.94 days, potentially indicating a slowing down in paying off obligations.

In conclusion, Ollie's Bargain Outlet Holdings' activity ratios show varying levels of efficiency in managing inventory, collecting sales revenue, and paying off obligations over the years, which may require further analysis to understand the underlying reasons for these fluctuations.

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Long-term

The Fixed Asset Turnover ratio for Ollie's Bargain Outlet Hldg remained consistent at 10.38 for January 28, 2023, and January 31, 2023. However, there is missing data or an unavailable value for January 31, 2024. After this missing data point, the ratio declined to 7.79 on February 3, 2024, indicating a decrease in the efficiency of generating sales from fixed assets.

In contrast, the Total Asset Turnover ratio fluctuated slightly over the period. It was at 0.89 for both January 28, 2023, and January 31, 2023, then increased to 0.92 for both January 31, 2024, and February 3, 2024. However, by January 31, 2025, it reverted back to 0.89. This shows that the company had relatively stable efficiency in generating sales from total assets, with a slight increase during the middle of the period before returning to its initial level at the end.