Sally Beauty Holdings Inc (SBH)
Payables turnover
| Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,437,477 | 3,427,647 | 3,398,003 | 3,396,595 | 3,407,134 | 3,512,784 | 3,534,335 | 3,512,090 | 3,507,054 | 3,438,375 | 3,471,704 | 3,498,196 | 3,463,054 | 3,422,722 | 3,232,208 | 3,209,749 | 3,262,170 | 3,274,554 | 3,424,428 | 3,436,524 |
| Payables | US$ in thousands | 269,424 | 234,552 | 289,606 | 267,479 | 258,884 | 243,976 | 265,075 | 296,170 | 275,717 | 279,359 | 240,594 | 346,302 | 291,632 | 268,868 | 310,215 | 285,636 | 236,333 | 239,905 | 221,760 | 272,082 |
| Payables turnover | 12.76 | 14.61 | 11.73 | 12.70 | 13.16 | 14.40 | 13.33 | 11.86 | 12.72 | 12.31 | 14.43 | 10.10 | 11.87 | 12.73 | 10.42 | 11.24 | 13.80 | 13.65 | 15.44 | 12.63 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,437,477K ÷ $269,424K
= 12.76
The payables turnover ratio for Sally Beauty Holdings Inc has exhibited fluctuating trends over the past several quarters. The ratio measures how efficiently the company is managing its accounts payable by comparing the cost of goods sold to its average accounts payable balance.
Looking at the data provided, we can see that the payables turnover ratio has ranged from a low of 10.10 to a high of 15.44 over the last 8 quarters. In general, a higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could be viewed positively as it reflects good cash management practices and potentially good relationships with suppliers.
However, a very high payables turnover ratio could also indicate that the company is not taking full advantage of supplier credit terms, potentially straining its relationships with suppliers.
Overall, Sally Beauty Holdings Inc's payables turnover ratio has shown variability, suggesting fluctuations in its payment practices and supplier relationships. It would be important for the company to analyze these trends further to ensure optimal cash flow management while maintaining good relationships with suppliers.
Peer comparison
Sep 30, 2024