Sally Beauty Holdings Inc (SBH)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,407,100 | 3,507,050 | 3,463,150 | 3,264,570 | 3,429,240 |
| Payables | US$ in thousands | 258,884 | 275,717 | 291,632 | 236,333 | 278,688 |
| Payables turnover | 13.16 | 12.72 | 11.88 | 13.81 | 12.30 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,407,100K ÷ $258,884K
= 13.16
The payables turnover ratio for Sally Beauty Holdings Inc has shown a fluctuating trend over the past five years. The ratio indicates the number of times a company pays off its accounts payable during a specific period. A higher payables turnover ratio suggests that the company is efficiently managing its payables by paying them off quickly.
Sally Beauty's payables turnover ratio has demonstrated a general increasing trend from 2019 to 2020, indicating an improvement in the company's ability to settle its payables. However, there was a slight decrease in the ratio in 2021, followed by a subsequent increase in 2022 and 2023. This fluctuation may be reflective of changes in the company's payment practices or supplier relationships.
Overall, the company's payables turnover ratio has remained relatively high, indicating that Sally Beauty has been effectively managing its accounts payable and has a consistent ability to meet its short-term obligations. However, it would be essential to assess the underlying reasons for the fluctuations in the ratio in order to better understand the company's management of payables.
Peer comparison
Sep 30, 2023