The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Five Below's quick ratio for the quarter that ended in Jan. 2024 was 0.86.
Five Below has a quick ratio of 0.86. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Five Below's Quick Ratio or its related term are showing as below:
FRA:6F1'
s Quick Ratio Range Over the Past 10 Years
Min: 0.77 Med: 1.07 Max: 1.78
Current: 0.86
During the past 13 years, Five Below's highest Quick Ratio was 1.78. The lowest was 0.77. And the median was 1.07.
FRA:6F1's Quick Ratio is ranked worse than 50.09% of 1118
companies
in the Retail - Cyclical industry
Industry Median: 0.865
vs FRA:6F1: 0.86
Five Below Quick Ratio Historical Data
The historical data trend for Five Below's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Retail subindustry, Five Below's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Five Below Quick Ratio Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, Five Below's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Five Below's Quick Ratio falls into.
Five Below Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Five Below's Quick Ratio for the fiscal year that ended in Jan. 2024 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Five Below (FRA:6F1) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Five Below Quick Ratio Related Terms
Thank you for viewing the detailed overview of Five Below's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Five Below is a value-oriented retailer that operated 1,340 stores in the United States as of the end of fiscal 2022. Catering to teen and preteen consumers, its stores feature a wide variety of merchandise, the vast majority of which is priced below $6. The assortment focuses on discretionary items in several categories, particularly leisure (such as sporting goods, toys, and electronics; 48% of fiscal 2022 sales), fashion and home (for example, beauty products and accessories, home goods, and storage solutions; 29% of fiscal 2022 sales), and party and snack (including seasonal goods, candy, and beverages; 23% of fiscal 2022 sales). The chain had stores in 42 states as of the end of fiscal 2022.
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