Prestige Brand Holdings Inc (PBH)

Payables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	500,909	502,431	466,166	395,893	410,787
Payables	US$ in thousands	38,979	62,743	55,760	45,978	62,375
Payables turnover		12.85	8.01	8.36	8.61	6.59

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $500,909K ÷ $38,979K
= 12.85

Prestige Brand Holdings Inc's payables turnover has shown an increasing trend over the past five years, reaching 12.85 in 2024 from 6.59 in 2020. This improvement indicates that the company is managing its accounts payable more efficiently, with a higher frequency of paying off its suppliers within a given period.

A higher payables turnover ratio typically suggests that the company is effective in managing its working capital and paying off its obligations promptly. This may reflect good relationships with suppliers, negotiation power to secure favorable credit terms, and efficient cash flow management.

It is important to note that while a high payables turnover ratio can be positive, excessively high ratios could indicate that the company is potentially delaying payments to suppliers excessively, which could strain relationships or lead to supply chain disruptions.

Overall, the increasing trend in Prestige Brand Holdings Inc's payables turnover suggests an improvement in the management of its accounts payable over the years, contributing to a more efficient working capital cycle.