Prestige Brand Holdings Inc (PBH)

Working capital turnover

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Revenue US$ in thousands 1,137,760 1,125,360 1,127,720 1,086,810 943,365
Total current assets US$ in thousands 448,328 375,043 391,743 293,267 269,835
Total current liabilities US$ in thousands 106,623 117,048 160,715 143,422 122,138
Working capital turnover 3.33 4.36 4.88 7.25 6.39

March 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,137,760K ÷ ($448,328K – $106,623K)
= 3.33

The working capital turnover ratio for Prestige Brand Holdings Inc has exhibited fluctuations over the past five years. In March 2022, the ratio improved to 7.25 from 6.39 in March 2021, indicating that the company was able to generate revenue more efficiently using its working capital.

However, there was a notable decrease in efficiency in the subsequent years, with the ratio declining to 4.88 in March 2023, further dropping to 4.36 in March 2024, and reaching 3.33 in March 2025. These lower ratios suggest that Prestige Brand Holdings Inc may have been less effective in leveraging its working capital to generate sales revenue.

Overall, the declining trend in working capital turnover indicates a potential inefficiency in managing the company's working capital resources to generate sales, which could lead to liquidity challenges or suboptimal utilization of assets in the future.