Ollie's Bargain Outlet Hldg (OLLI)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	205,123	128,685	170,600	212,250	266,262	266,262	159,555	159,555	181,416	181,416	134,959	134,959	210,596	210,596	182,104	182,104	218,043	218,043	205,463	246,977
Short-term investments	US$ in thousands	223,546	175,226	182,544	129,250	86,980	86,980	104,477	104,477	128,769	128,769	140,530	140,530	60,165	60,165	60,165	60,165	—	—	—	—
Total current liabilities	US$ in thousands	304,341	317,107	297,841	310,792	315,551	315,551	289,103	289,103	298,295	298,295	278,213	278,213	259,285	259,285	252,193	252,193	254,112	254,112	258,154	263,268
Cash ratio		1.41	0.96	1.19	1.10	1.12	1.12	0.91	0.91	1.04	1.04	0.99	0.99	1.04	1.04	0.96	0.96	0.86	0.86	0.80	0.94

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 is a liquidity ratio that measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. The cash ratio indicates the proportion of a company's current assets that are held in cash or can be quickly converted into cash.

Based on the provided data, the cash ratio of Ollie's Bargain Outlet Hldg fluctuated over the analyzed period, ranging from 0.80 to 1.41. A cash ratio below 1 indicates that the company may not have enough cash on hand to cover its short-term obligations, while a ratio above 1 suggests the company has more than enough cash to meet its short-term liabilities.

The trend of the cash ratio shows some variations, with some quarters showing lower ratios and others exhibiting higher ratios. This variability could be due to factors such as fluctuations in cash balances, changes in short-term liabilities, or management's strategic decisions regarding cash management.

Overall, a cash ratio above 1, as seen in some periods for Ollie's Bargain Outlet Hldg, indicates a strong ability to meet short-term financial obligations using available cash resources. Investors and analysts may view a consistently healthy cash ratio positively as it signifies the company's liquidity and ability to weather financial challenges.