Sally Beauty Holdings Inc (SBH)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,438,100 | 3,407,100 | 3,507,050 | 3,463,150 | 3,264,570 |
| Payables | US$ in thousands | 269,424 | 258,884 | 275,717 | 291,632 | 236,333 |
| Payables turnover | 12.76 | 13.16 | 12.72 | 11.88 | 13.81 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,438,100K ÷ $269,424K
= 12.76
Sally Beauty Holdings Inc has exhibited varying trends in its payables turnover ratio over the past five years. The payables turnover ratio measures how efficiently the company pays its suppliers. A higher turnover ratio indicates that the company is paying its suppliers more frequently within a given period.
In Sep 30, 2020, the payables turnover ratio was 13.81, reflecting a high level of efficiency in settling payables with suppliers. However, in the subsequent years, the ratio fluctuated, decreasing to 11.88 in Sep 30, 2021, before increasing again to 12.72 in Sep 30, 2022, and then slightly declining to 13.16 in Sep 30, 2023.
The most recent data available, for Sep 30, 2024, shows a payables turnover ratio of 12.76, indicating that the company continues to effectively manage its payables but at a slightly lower pace compared to the previous year.
Overall, the trend in the payables turnover ratio suggests that Sally Beauty Holdings Inc has been relatively consistent in its management of payables, with minor fluctuations in efficiency over the past five years. It is important to monitor this ratio over time to assess the company's ability to maintain healthy supplier relationships and optimize cash flow.
Peer comparison
Sep 30, 2024