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 is managing its assets and operations.

1. Inventory Turnover: The inventory turnover ratio indicates how many times a company sells and replaces its inventory during a specific period. Ollie's inventory turnover ratio has been relatively consistent, ranging from 3.01 to 4.52 over the past few periods. A higher inventory turnover ratio suggests that Ollie's is efficiently managing its inventory levels.

2. Receivables Turnover: The receivables turnover ratio measures how efficiently a company collects on its credit sales. Ollie's receivables turnover ratio has varied significantly, ranging from 345.56 to 8,450.68 over the periods analyzed. Higher receivables turnover ratios indicate that Ollie's is collecting its receivables quickly, which is positive for cash flow.

3. Payables Turnover: The payables turnover ratio assesses how efficiently a company pays its suppliers and vendors. Ollie's payables turnover ratio has fluctuated between 11.68 and 22.22 over the periods examined. A higher payables turnover ratio typically indicates that Ollie's is managing its payables effectively.

4. Working Capital Turnover: The working capital turnover ratio reflects how efficiently a company generates revenue relative to its working capital. Ollie's working capital turnover ratio has shown consistency, ranging from 3.10 to 7.08 over the periods analyzed. A higher working capital turnover ratio suggests that Ollie's is effectively utilizing its working capital to generate sales.

Overall, Ollie's Bargain Outlet Hldg has shown varying but generally acceptable levels of efficiency in managing its inventory, receivables, payables, and working capital, as indicated by the activity ratios analyzed. The company's ability to maintain steady or improving ratios over time reflects effective operational management and good control over its assets and liabilities.

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Average number of days

Days of inventory on hand (DOH) for Ollie's Bargain Outlet Hldg have been fluctuating over the past 2 years, ranging from a low of 80.72 days to a high of 121.23 days. The current DOH stands at 98.47 days. This indicates that, on average, it takes the company about 98.47 days to sell its inventory. A declining trend in DOH would signify a faster inventory turnover and more efficient management of inventory.

Days of sales outstanding (DSO) show how efficiently Ollie's Bargain Outlet Hldg collects its accounts receivable. The DSO has varied between 0.04 days to 1.06 days over the past 2 years, with the current DSO at 0.39 days. This indicates that, on average, the company collects its accounts receivable in approximately 0.39 days. A lower DSO is generally better as it implies faster collection of cash from customers.

Number of days of payables measures how long it takes the company to pay its suppliers. Ollie's Bargain Outlet Hldg has had fluctuations in this metric, with the number of days of payables ranging from a low of 16.43 days to a high of 31.25 days. The current number of days of payables stands at 24.94 days. A longer number of days of payables indicates that the company is taking longer to pay its suppliers, which could be beneficial for cash flow management.

Overall, by analyzing these activity ratios, we can assess how efficiently Ollie's Bargain Outlet Hldg manages its inventory, collects its accounts receivable, and pays its suppliers.

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Long-term

Ollie's Bargain Outlet Inc. has shown consistent performance in terms of its long-term activity ratios over the past few quarters. The fixed asset turnover ratio has generally been on an upward trend, indicating that the company is generating more sales relative to its investment in fixed assets. This implies that Ollie's is effectively utilizing its fixed assets to generate revenues.

On the other hand, the total asset turnover ratio has remained relatively stable over the quarters, hovering around the 0.90 mark. This ratio reflects how efficiently the company is using its total assets to generate revenue. A total asset turnover ratio close to 1 generally indicates good efficiency in asset utilization, and Ollie's performance in this area has been consistent.

Overall, the trend in both fixed asset turnover and total asset turnover ratios suggests that Ollie's Bargain Outlet Hldg is effectively managing its assets to generate sales, which is a positive sign for the company's operational efficiency.