Ollie's Bargain Outlet Hldg (OLLI)

Working capital turnover

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Revenue US$ in thousands 2,271,700 2,102,700 2,102,660 1,827,010 1,827,080
Total current assets US$ in thousands 993,791 871,428 871,428 754,296 754,296
Total current liabilities US$ in thousands 304,341 315,551 315,551 259,285 259,285
Working capital turnover 3.29 3.78 3.78 3.69 3.69

January 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,271,700K ÷ ($993,791K – $304,341K)
= 3.29

The working capital turnover for Ollie's Bargain Outlet Hldg has been consistent over the last few years, with a slight improvement in the most recent period. The turnover ratio was 3.69 for January 28, 2023, and this figure remained the same for January 31, 2023. It then increased to 3.78 for both January 31, 2024, and February 3, 2024. However, there was a decrease to 3.29 for January 31, 2025.

Overall, the working capital turnover indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio suggests that Ollie's Bargain Outlet Hldg is efficiently managing its working capital to support its operations and sales activities. In contrast, a lower turnover ratio, such as the one seen in the latest period, may indicate potential inefficiencies in the management of working capital resources. Further analysis of the company's working capital management practices and strategies would be warranted to understand the reasons behind the fluctuation in the working capital turnover ratio.