Ollie's Bargain Outlet Hldg (OLLI)

Ollie's Bargain Outlet Holding's liquidity ratios indicate the company's ability to meet its short-term obligations effectively.

1. Current Ratio: The current ratio measures the company's ability to cover its short-term obligations with its current assets. Ollie's Bargain Outlet Holding's current ratio has been consistently above 2.5, indicating a healthy liquidity position. As of January 31, 2025, the company's current ratio improved further to 3.27, showcasing a stronger ability to meet its short-term liabilities.

2. Quick Ratio: The quick ratio provides a more conservative measure of liquidity by excluding inventory from current assets. Ollie's Bargain Outlet Holding's quick ratio has shown a positive trend over the years, with the ratio increasing from 1.05 on January 28, 2023, to 1.41 on January 31, 2025. This suggests that the company has a sufficient level of highly liquid assets to cover its short-term liabilities.

3. Cash Ratio: The cash ratio focuses solely on the most liquid assets, cash and equivalents, to assess the company's ability to cover its short-term obligations. Ollie's Bargain Outlet Holding's cash ratio has remained stable and strong, consistently above 1.0, indicating that the company has a significant amount of cash on hand relative to its current liabilities. As of January 31, 2025, the cash ratio stood at 1.41, signaling a robust liquidity position.

Overall, Ollie's Bargain Outlet Holding's liquidity ratios reveal that the company has maintained a strong liquidity position over the years, with sufficient current assets and cash reserves to meet its short-term obligations efficiently.

---

Additional liquidity measure

The cash conversion cycle of Ollie's Bargain Outlet Hldg has shown some fluctuations over the period analyzed.

1. As of January 28, 2023, the cash conversion cycle was 82.32 days. This indicates that Ollie's was able to convert its investments in inventory back to cash within approximately 82 days.

2. By January 31, 2023, the cash conversion cycle increased significantly to 146.68 days. This suggests that it took Ollie's longer to convert inventory into sales and eventually into cash.

3. Moving to January 31, 2024, the cash conversion cycle remained high at 145.33 days, reflecting a continued challenge in efficiently managing working capital.

4. A notable improvement was seen by February 3, 2024, where the cash conversion cycle decreased to 73.92 days. This indicates a more effective conversion of inventory and sales into cash during this period.

5. However, by January 31, 2025, the cash conversion cycle rose again to 148.59 days, indicating a regression in the company's ability to efficiently convert investments in inventory back to cash.

Overall, the trend in Ollie's Bargain Outlet Hldg's cash conversion cycle suggests some variability in the efficiency of its working capital management, with periods of improvement and regression. Further analysis would be needed to understand the factors contributing to these fluctuations and to identify areas for potential operational enhancements.