Ollie's Bargain Outlet Hldg (OLLI)

Quick 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 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 — — — —
Receivables US$ in thousands — — — — 2,223 — — 1,973 — 2,935 — 985 — 2,374 — 1,363 — 3,086 — —
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
Quick ratio 1.41 0.96 1.19 1.10 1.13 1.12 0.91 0.92 1.04 1.05 0.99 0.99 1.04 1.05 0.96 0.97 0.86 0.87 0.80 0.94

January 31, 2025 calculation

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

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1.0 indicates that a company may have difficulty meeting its short-term liabilities.

Analyzing the quick ratio of Ollie's Bargain Outlet Holdings from January 2022 to January 2025, we observe fluctuations in the ratio. At the beginning of the period in January 2022, the quick ratio was 0.94, suggesting that the company may have faced challenges in meeting its short-term obligations with its quick assets alone.

Over the following quarters, the quick ratio varied between 0.80 and 1.05, indicating some volatility in the company's liquidity position. Notably, in April 2023 and July 2023, the quick ratio improved to 1.05 and 1.04, respectively, indicating a better ability to cover short-term liabilities with quick assets during those periods.

However, the quick ratio dipped again in October 2023 to 0.91, signaling a potential strain on the company's short-term liquidity. The ratio then fluctuated between 0.92 and 1.19 until October 2024. In January 2025, the quick ratio surged to 1.41, indicating a significant improvement in Ollie's ability to cover its immediate obligations with its quick assets.

Overall, fluctuations in Ollie's Bargain Outlet Holdings quick ratio over the period suggest varying levels of liquidity and the company's ability to meet short-term obligations with its liquid assets. An increasing trend in the quick ratio can be seen as a positive sign of improved liquidity and financial health, while a decreasing trend may raise concerns about the company's short-term liquidity position.