Ollie's Bargain Outlet Hldg (OLLI)

Cash conversion cycle

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Feb 3, 2024 Jan 31, 2024 Oct 31, 2023 Oct 28, 2023 Jul 31, 2023 Jul 29, 2023 Apr 30, 2023 Apr 29, 2023 Jan 31, 2023 Jan 28, 2023 Oct 31, 2022 Oct 29, 2022 Jul 31, 2022 Jul 30, 2022 Apr 30, 2022 Jan 31, 2022
Days of inventory on hand (DOH) days 147.75 145.76 120.34 125.18 110.43 128.35 128.97 129.43 122.82 120.74 119.07 121.23 117.05 119.86 137.85 136.67 135.79 123.28 150.01 126.72
Days of sales outstanding (DSO) days — — — — 0.36 — — 0.37 — 0.54 — 0.18 — 0.47 — 0.29 — 0.61 — —
Number of days of payables days — — — — 27.97 — — 25.63 — 29.35 — 24.23 — 22.98 — 21.71 — 24.11 — —
Cash conversion cycle days 147.75 145.76 120.34 125.18 82.82 128.35 128.97 104.16 122.82 91.93 119.07 97.17 117.05 97.35 137.85 115.24 135.79 99.77 150.01 126.72

January 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 147.75 + — – —
= 147.75

The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Ollie's Bargain Outlet Holdings, the cash conversion cycle has shown fluctuations over the periods provided in the data.

Based on the data, the cash conversion cycle for Ollie's Bargain Outlet Holdings ranged from a low of 82.82 days on February 3, 2024, to a high of 150.01 days on April 30, 2022. Generally, a shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and quickly convert its assets into cash.

Ollie's Bargain Outlet Holdings experienced some irregularities in its cash conversion cycle, with periods of significant drops and increases. For example, there was a notable improvement from the peak of 150.01 days on April 30, 2022, to 99.77 days on July 30, 2022. However, the cycle increased again to 135.79 days on July 31, 2022, before fluctuating in subsequent periods.

Overall, fluctuations in the cash conversion cycle can be influenced by various factors such as inventory management, accounts receivable collection, and accounts payable efficiency. Monitoring these fluctuations over time can provide insights into the company's working capital management and operational efficiency.