Ollie's Bargain Outlet Hldg (OLLI)

Working capital turnover

Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Revenue US$ in thousands 2,102,700 1,827,080 1,752,950 1,808,570 1,407,980
Total current assets US$ in thousands 871,428 754,296 726,828 808,767 433,538
Total current liabilities US$ in thousands 315,551 259,285 263,268 283,796 177,685
Working capital turnover 3.78 3.69 3.78 3.45 5.50

February 3, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,102,700K ÷ ($871,428K – $315,551K)
= 3.78

The working capital turnover ratio for Ollie's Bargain Outlet Hldg fluctuated over the past five years. In the most recent fiscal year, ending on February 3, 2024, the ratio stood at 3.78, which indicates that the company generated $3.78 in revenue for every $1 of working capital invested.

Comparing this to the previous fiscal years, we can see a relatively stable trend in the working capital turnover ratio, with slight variations. The ratios for the years ended January 28, 2023, and January 29, 2022, were 3.69 and 3.78, respectively, showing a consistent level of efficiency in utilizing working capital during these periods.

In contrast, the working capital turnover ratio for the fiscal year ending on January 30, 2021, was slightly lower at 3.45, suggesting a slight decrease in revenue generation relative to working capital invested compared to the prior years.

The most significant deviation occurred in the fiscal year ending on February 1, 2020, where the working capital turnover ratio spiked to 5.50. This substantial increase in efficiency indicates that the company significantly improved its ability to generate revenue using the available working capital during that period.

Overall, Ollie's Bargain Outlet Hldg has demonstrated a reasonable level of efficiency in utilizing its working capital to generate revenue over the past five years, with some fluctuations in performance. It may be beneficial for the company to analyze the factors contributing to these fluctuations to maintain or improve its operational efficiency in the future.