Sally Beauty Holdings Inc (SBH)
Payables turnover
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 3,430,418 | 3,431,770 | 3,473,095 |
| Payables | US$ in thousands | 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 | 278,688 | 272,629 | 252,470 |
| Payables turnover | 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 | 12.31 | 12.59 | 13.76 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,396,595K ÷ $267,479K
= 12.70
The payables turnover ratio for Sally Beauty Holdings Inc has been relatively stable over the past eight quarters, ranging from 6.36 to 7.68. This ratio measures how efficiently the company is managing its accounts payable by indicating how many times during the period the company paid off its suppliers.
A higher payables turnover ratio typically indicates that the company is paying its suppliers more quickly, which can be viewed positively as it suggests strong liquidity and good vendor relationships. However, a very high ratio could also indicate aggressive payment practices that may strain relationships with suppliers.
In the most recent quarter, Q1 2024, the payables turnover ratio was 6.83, showing a slight decrease from the previous quarter. While the ratio remains within a relatively consistent range, management may want to monitor any significant fluctuations to ensure that the company's payment practices are sustainable and not adversely affecting supplier relationships or liquidity.
Peer comparison
Dec 31, 2023