Prestige Brand Holdings Inc (PBH)

Working capital 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
Revenue (ttm)	US$ in thousands	1,125,357	1,134,235	1,127,018	1,129,975	1,127,725	1,108,792	1,107,738	1,094,690	1,086,812	1,057,637	1,021,955	983,152	943,365	956,839	959,603	960,250	963,010	952,801	952,663	953,951
Total current assets	US$ in thousands	375,043	393,786	388,198	391,758	391,743	408,847	336,653	324,615	293,267	275,266	304,810	408,524	269,835	301,211	269,853	295,564	365,654	300,369	304,886	310,521
Total current liabilities	US$ in thousands	117,048	127,437	129,704	147,271	160,715	160,176	152,308	155,349	143,422	135,127	148,940	125,046	122,138	126,163	136,120	131,929	149,881	149,036	146,894	143,491
Working capital turnover		4.36	4.26	4.36	4.62	4.88	4.46	6.01	6.47	7.25	7.55	6.56	3.47	6.39	5.47	7.18	5.87	4.46	6.30	6.03	5.71

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,125,357K ÷ ($375,043K – $117,048K)
= 4.36

The working capital turnover of Prestige Brand Holdings Inc has shown fluctuations over the past several quarters, ranging from 3.47 to 7.55. The metric peaked in the first quarter of 2022 at 7.55 and has since trended downwards, with occasional fluctuations.

The working capital turnover ratio reflects how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its current assets and liabilities to support sales activities.

Prestige Brand Holdings Inc's working capital turnover has generally been healthy, staying above 4.0 for most quarters, with some exceptionally high ratios recorded in the past. However, the recent downward trend suggests a potential decrease in the efficiency of working capital utilization to support sales.

It is essential for the company to closely monitor and manage its working capital to ensure optimal efficiency in supporting its sales activities and overall operations. Further analysis and comparisons with industry benchmarks would provide additional insights into the company's working capital management effectiveness.