Ollie's Bargain Outlet Hldg (OLLI)

Cash ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cash and cash equivalents	US$ in thousands	266,262	210,596	246,977	447,126	89,950
Short-term investments	US$ in thousands	86,980	60,165	—	—	—
Total current liabilities	US$ in thousands	315,551	259,285	263,268	283,796	177,685
Cash ratio		1.12	1.04	0.94	1.58	0.51

February 3, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($266,262K + $86,980K) ÷ $315,551K
= 1.12

The cash ratio of Ollie's Bargain Outlet Hldg has fluctuated over the past five years. The ratio provides insight into the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.

In this case, the cash ratio was 1.12 as of February 3, 2024, which suggests that Ollie's Bargain Outlet Hldg had $1.12 in cash and cash equivalents for every dollar of current liabilities. This indicates a healthy liquidity position, as the company has a sufficient buffer of cash to cover its short-term obligations.

Comparing this to previous years, the cash ratio has shown variability. It increased from 0.51 in February 1, 2020, to 1.58 in January 30, 2021, before decreasing to 0.94 in January 29, 2022, and then increasing again to 1.04 in January 28, 2023.

Overall, the trend in the cash ratio indicates fluctuations in Ollie's Bargain Outlet Hldg's liquidity position over the years, with varying levels of readiness to meet short-term financial commitments using available cash reserves.