Prestige Brand Holdings Inc (PBH)

Payables turnover

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cost of revenue (ttm)	US$ in thousands	500,909	507,840	508,159	510,127	502,431	488,400	482,688	472,937	466,166	448,797	429,288	410,536	395,893	402,513	406,669	408,226	410,787	406,242	404,364	404,931
Payables	US$ in thousands	38,979	39,339	44,381	57,861	62,743	64,254	56,196	58,110	55,760	40,103	38,047	30,963	45,978	29,114	55,423	32,352	62,375	50,408	64,941	62,109
Payables turnover		12.85	12.91	11.45	8.82	8.01	7.60	8.59	8.14	8.36	11.19	11.28	13.26	8.61	13.83	7.34	12.62	6.59	8.06	6.23	6.52

March 31, 2024 calculation

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

The payables turnover ratio for Prestige Brand Holdings Inc fluctuated over the past few quarters. The ratio measures how efficiently the company is managing its accounts payable by evaluating how many times during a period it pays off its suppliers.

From the data provided, we can observe that the payables turnover ratio ranged from a low of 6.23 to a high of 13.83 over the last few quarters. A higher payables turnover ratio indicates that Prestige Brand Holdings Inc is paying off its suppliers more frequently, which could be a sign of good financial health and effective cash flow management.

However, the fluctuation in the ratio suggests inconsistencies in the company's payment strategies. It is important for the company to analyze the reasons behind these fluctuations to ensure that they are managing their payables effectively. Further investigation into the company's supplier relationships and cash flow management practices may provide insights into how to stabilize and possibly improve the payables turnover ratio in the future.