Ollie's Bargain Outlet Hldg (OLLI)

Cash ratio

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cash and cash equivalents	US$ in thousands	205,123	266,262	266,262	210,596	210,596
Short-term investments	US$ in thousands	223,546	86,980	86,980	60,165	60,165
Total current liabilities	US$ in thousands	304,341	315,551	315,551	259,285	259,285
Cash ratio		1.41	1.12	1.12	1.04	1.04

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($205,123K + $223,546K) ÷ $304,341K
= 1.41

The cash ratio of Ollie's Bargain Outlet Hldg has been relatively stable over the past few years. As of January 31, 2025, the cash ratio stands at 1.41, indicating that the company has $1.41 in cash and cash equivalents for every $1 of current liabilities. This suggests that Ollie's Bargain Outlet Hldg has a strong ability to cover its short-term obligations with its available cash resources. A higher cash ratio generally signifies a better liquidity position and financial stability, providing a cushion against unexpected financial challenges or disruptions. Overall, the upward trend in the cash ratio reflects a prudent approach to managing liquidity and ensuring the company's ability to meet its short-term financial commitments.