Ollie's Bargain Outlet Hldg (OLLI)

Working capital turnover

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Revenue (ttm)	US$ in thousands	2,102,528	2,003,409	1,941,431	1,879,404	1,826,956	1,778,321	1,743,736	1,707,135	1,752,995	1,767,623	1,798,518	1,911,950	1,808,821	1,715,489	1,628,156	1,432,708	1,408,199	1,379,702	1,336,259	1,290,492
Total current assets	US$ in thousands	871,428	805,559	818,261	783,268	754,296	714,352	724,672	731,356	726,828	712,515	826,850	833,249	808,767	732,502	657,260	472,436	433,538	401,468	439,643	394,260
Total current liabilities	US$ in thousands	315,551	289,103	298,295	278,213	259,285	252,193	254,112	258,154	263,268	274,596	245,863	255,020	283,796	276,160	241,588	190,421	177,685	187,601	206,437	212,092
Working capital turnover		3.78	3.88	3.73	3.72	3.69	3.85	3.71	3.61	3.78	4.04	3.10	3.31	3.45	3.76	3.92	5.08	5.50	6.45	5.73	7.08

February 3, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,102,528K ÷ ($871,428K – $315,551K)
= 3.78

The working capital turnover for Ollie's Bargain Outlet Holding has shown fluctuations over the past few years, ranging from a low of 3.10 to a high of 7.08. Overall, the company has maintained an average working capital turnover ratio of approximately 4, indicating that Ollie's effectively utilizes its working capital to generate sales revenue.

A higher working capital turnover ratio signifies that the company is efficient in managing its working capital and converting it into sales. Ollie's has demonstrated periods of strong working capital efficiency, such as in November 2019 and May 2020 when the ratio was notably high at 6.45 and 5.08, respectively.

However, there have been periods of lower working capital turnover, like in July 2021 and January 2023, where the ratio dropped to 3.10 and 3.45, respectively. This could indicate potential inefficiencies in working capital management during those periods.

Investors and analysts should continue to monitor Ollie's working capital turnover ratio to assess the company's ability to effectively utilize its working capital resources and generate sales revenue efficiently over time.