Sally Beauty Holdings Inc (SBH)
Number of days of payables
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 13.16 | 12.72 | 11.88 | 13.81 | 12.30 | |
| Number of days of payables | days | 27.73 | 28.70 | 30.74 | 26.42 | 29.66 |
September 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 13.16
= 27.73
The number of days of payables for Sally Beauty Holdings Inc has been relatively stable over the past five years. In 2023, the company took an average of 51.64 days to pay its suppliers, which is a slight improvement from the previous year. This indicates that the company has been able to manage its payables more effectively, potentially negotiating extended payment terms with its creditors. The decreasing trend in the number of days of payables could also suggest improved working capital management, allowing the company to hold onto cash for a longer period before settling its obligations. However, it's important to note that while a longer payment period can improve cash flow, it may strain relationships with suppliers if not managed carefully. Therefore, monitoring this ratio is crucial to ensuring the company's financial health and relationships with its suppliers.
Peer comparison
Sep 30, 2023