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.