Ollie's Bargain Outlet Hldg (OLLI)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	98.47	107.61	103.75	105.24	101.26	115.32	111.17	121.23	110.16	112.13	88.59	80.72	84.31	98.85	85.73	99.68	98.95	116.18	110.28	106.89
Days of sales outstanding (DSO)	days	0.39	0.36	0.55	0.19	0.47	0.28	0.65	0.23	0.29	0.12	0.17	0.07	0.13	0.04	0.55	1.06	0.74	0.26	0.33	0.27
Number of days of payables	days	24.94	21.31	25.22	21.04	19.41	18.32	21.74	23.71	25.13	28.97	22.01	20.54	27.94	31.25	28.22	16.43	18.66	23.46	28.57	30.12
Cash conversion cycle	days	73.92	86.66	79.08	84.39	82.32	97.28	90.07	97.75	85.31	83.29	66.75	60.25	56.49	67.65	58.06	84.32	81.02	92.97	82.04	77.04

February 3, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 98.47 + 0.39 – 24.94
= 73.92

The cash conversion cycle of Ollie's Bargain Outlet Hldg has fluctuated over the periods analyzed. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory back into cash.

From November 2019 to February 2024, Ollie's Bargain Outlet Hldg's cash conversion cycle varied between 56.49 days to 97.75 days. A shorter cash conversion cycle indicates that the company is able to efficiently manage its inventory, accounts receivable, and accounts payable to generate cash quickly. Conversely, a longer cash conversion cycle suggests inefficiencies in managing working capital.

Overall, Ollie's Bargain Outlet Hldg has shown some fluctuations in its cash conversion cycle, with some periods indicating better efficiency in managing its working capital than others. It would be beneficial for the company to focus on strategies to optimize its cash conversion cycle to improve its overall financial performance and liquidity.