Prestige Brand Holdings Inc (PBH)

Short-term

Turnover ratios

Prestige Brand Holdings Inc's activity ratios indicate the efficiency of the company in managing its inventory, receivables, payables, and working capital over the years.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period. Prestige Brand Holdings Inc's inventory turnover has shown fluctuation over the past five years, ranging from 3.10 to 3.87. The company seems to be effectively managing its inventory levels, with a moderate turnover rate.

2. Receivables Turnover: This ratio reflects how quickly a company collects cash from customers after a sale. Prestige Brand Holdings Inc's receivables turnover has been gradually decreasing from 8.23 to 5.86, indicating a slower collection of receivables over the years. This trend may require further investigation to ensure efficient cash flow management.

3. Payables Turnover: Payables turnover measures how efficiently a company pays its suppliers. Prestige Brand Holdings Inc's payables turnover has shown significant variability, with a sharp increase from 8.01 to 26.59 in the last year. This sudden jump may suggest changes in the company's payment policies or supplier relationships.

4. Working Capital Turnover: This ratio assesses how effectively a company utilizes its working capital to generate sales. Prestige Brand Holdings Inc's working capital turnover has been gradually decreasing from 6.39 to 3.33. A declining trend in this ratio may indicate inefficiencies in utilizing working capital resources to drive revenue growth.

Overall, while Prestige Brand Holdings Inc demonstrates moderate efficiency in managing its inventory and payables, there are areas, such as receivables management and working capital utilization, that may require closer attention to optimize operational performance.

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Average number of days

Prestige Brand Holdings Inc's activity ratios reveal important insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): The company's DOH shows the number of days it takes to sell its inventory. Over the period from March 31, 2021, to March 31, 2025, Prestige Brand Holdings Inc experienced fluctuations in its DOH, ranging from 94.23 days to 117.78 days. A decreasing trend in DOH, such as the decrease from 117.78 days in 2023 to 101.08 days in 2024, indicates that the company is selling its inventory more quickly, which could be a positive sign of efficient inventory management.

2. Days of Sales Outstanding (DSO): DSO represents the average number of days it takes for the company to collect its accounts receivable. Prestige Brand Holdings Inc's DSO increased gradually from 44.37 days in 2021 to 62.33 days in 2025. A rising trend in DSO may suggest potential issues with accounts receivable management and collection efficiency, which could lead to cash flow challenges if not addressed.

3. Number of Days of Payables: This ratio refers to the average number of days the company takes to pay its suppliers. Prestige Brand Holdings Inc's number of days of payables decreased significantly from 42.39 days in 2021 to 13.72 days in 2025. A decreasing trend in payables days could indicate that the company is paying its suppliers more quickly, which may impact cash flow positively but could strain liquidity if not managed effectively.

Overall, analyzing these activity ratios for Prestige Brand Holdings Inc provides valuable insights into its inventory management, accounts receivable collection efficiency, and supplier payment practices, which are crucial factors in assessing the company's operational performance and financial health.

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Long-term

The Fixed Asset Turnover ratio for Prestige Brand Holdings Inc has been showing an increasing trend over the years, with values of 13.47 in 2021, 15.24 in 2022, and 16.02 in 2023. This indicates that the company is able to generate more sales revenue relative to its fixed assets each year.

However, the data for 2024 and 2025 is not available, so it is difficult to assess the continuity of this positive trend in more recent years.

On the other hand, the Total Asset Turnover ratio has also been increasing, from 0.28 in 2021 to 0.33 in 2025. This suggests that the company is generating higher sales in relation to its total assets each year.

Overall, both ratios indicate that Prestige Brand Holdings Inc is efficiently utilizing its assets to generate sales revenue, although a more recent data is needed to provide a complete picture of the company's long-term activity performance.