Helen of Troy Ltd (HELE)
Payables turnover
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,762,787 | 1,770,628 | 1,809,354 | 1,839,090 | 1,879,198 | 1,974,426 | 2,027,857 | 1,961,340 | 1,963,589 | 1,908,135 | 1,914,820 | 1,943,012 | 1,834,954 | 1,389,240 | 1,247,969 | 1,175,778 | 1,140,452 | 1,098,177 | 1,071,004 | 1,053,356 |
| Payables | US$ in thousands | 245,349 | 293,050 | 258,669 | 226,191 | 190,598 | 232,460 | 311,622 | 323,119 | 308,178 | 306,049 | 337,465 | 317,573 | 334,807 | 301,175 | 280,487 | 193,637 | 152,674 | 141,523 | 166,684 | 139,060 |
| Payables turnover | 7.18 | 6.04 | 6.99 | 8.13 | 9.86 | 8.49 | 6.51 | 6.07 | 6.37 | 6.23 | 5.67 | 6.12 | 5.48 | 4.61 | 4.45 | 6.07 | 7.47 | 7.76 | 6.43 | 7.57 |
February 29, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,762,787K ÷ $245,349K
= 7.18
The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating the number of times a company pays its average accounts payable balance during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.
Looking at the historical payables turnover data of Helen of Troy Ltd, we can observe fluctuations in the ratio over time. The payables turnover ratio has shown variability, ranging from a low of 4.45 to a high of 9.86.
In analyzing this trend, we can see that there is some inconsistency in the payment behavior of Helen of Troy Ltd towards its suppliers. The ratio peaked at 9.86 during the February 28, 2023 period, suggesting that the company was paying its suppliers almost 10 times during that particular period, which could indicate a more aggressive approach towards managing its payables.
On the other hand, the lowest payables turnover ratio of 4.45 was recorded on November 30, 2020, indicating a slower rate of payments to suppliers during that period.
Overall, the fluctuations in the payables turnover ratio of Helen of Troy Ltd suggest varying approaches to managing accounts payable over time. It is essential for investors and stakeholders to monitor these trends to gain insights into the company's liquidity management and supplier relationships.