Ollie's Bargain Outlet Hldg (OLLI)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.76 | 2.79 | 2.74 | 2.82 | 2.91 | 2.83 | 2.85 | 2.83 | 2.76 | 2.59 | 3.36 | 3.27 | 2.85 | 2.65 | 2.72 | 2.48 | 2.44 | 2.14 | 2.13 | 1.86 |
| Quick ratio | 1.13 | 0.92 | 1.05 | 0.99 | 1.05 | 0.97 | 0.87 | 0.80 | 0.94 | 0.84 | 1.81 | 1.85 | 1.58 | 1.18 | 1.27 | 0.65 | 0.52 | 0.06 | 0.39 | 0.28 |
| Cash ratio | 1.12 | 0.91 | 1.04 | 0.99 | 1.04 | 0.96 | 0.86 | 0.80 | 0.94 | 0.84 | 1.81 | 1.85 | 1.58 | 1.18 | 1.26 | 0.63 | 0.51 | 0.05 | 0.38 | 0.28 |
The liquidity ratios of Ollie's Bargain Outlet Hldg show the company's ability to meet its short-term obligations using its current assets.
The current ratio has been relatively stable over the periods, staying within the range of 2.59 to 3.36. This indicates that Ollie's has a comfortable level of current assets compared to its current liabilities, suggesting good short-term liquidity.
On the other hand, the quick ratio, which excludes inventory from current assets, has shown more volatility, ranging from 0.52 to 1.85. This implies that Ollie's may face more challenges in meeting its short-term obligations without relying on inventory liquidation.
The cash ratio, which is the most conservative liquidity measure, has also fluctuated but generally maintained a stronger position compared to the quick ratio, ranging from 0.05 to 1.85. This indicates that Ollie's has a decent level of cash on hand to cover its current liabilities if needed.
Overall, Ollie's Bargain Outlet Hldg appears to have good liquidity levels based on these ratios, but attention should be paid to the variations in the quick ratio, especially in assessing the company's ability to meet short-term obligations without relying on inventory.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The trend analysis of Ollie's Bargain Outlet Hldg's cash conversion cycle over the past several periods shows fluctuations in the efficiency of its cash management. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory back into cash.
The company's cash conversion cycle has exhibited variability, ranging from a low of 56.49 days to a high of 97.75 days. The shorter the cash conversion cycle, the better, as it indicates that the company is able to manage its cash flow effectively.
Looking at the overall trend, there seems to be some level of seasonality in the cash conversion cycle, with fluctuations observed across different quarters. The company may experience longer cash conversion cycles during certain periods, possibly due to inventory build-up or slower collection of receivables.
Analyzing these trends can provide insights into Ollie's Bargain Outlet Hldg's working capital management practices and efficiency in converting its investments into cash. Monitoring and optimizing the cash conversion cycle can help the company improve its liquidity position and overall financial health.