Sally Beauty Holdings Inc (SBH)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.37 | 3.49 | 3.53 | 3.45 | 3.56 | 3.75 | 3.39 | 3.61 | 3.48 | 3.97 | 3.66 | 3.40 | 3.58 | 4.01 | 4.01 | 3.62 | 3.46 | 3.60 | 3.55 | 3.64 |
| Receivables turnover | 112.80 | 109.31 | 112.46 | 121.53 | 113.28 | 109.15 | 119.09 | 133.51 | 129.49 | 115.86 | 84.36 | 87.72 | 84.74 | 96.77 | 80.62 | 87.00 | 92.28 | 88.16 | 85.11 | 91.13 |
| 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 |
| Working capital turnover | 5.26 | 5.63 | 5.84 | 6.42 | 6.83 | 8.01 | 8.00 | 5.25 | 5.22 | 5.26 | 5.55 | 5.83 | 3.55 | 3.96 | 4.18 | 6.98 | 6.39 | 5.38 | 5.29 | 5.08 |
Sally Beauty Holdings Inc's activity ratios provide insight into the efficiency of the company's operations.
1. Inventory Turnover:
The inventory turnover ratio measures how effectively the company manages its inventory levels. Sally Beauty's inventory turnover has slightly decreased over the quarters from Q4 2022 to Q1 2024, indicating that it takes longer to sell through its inventory.
2. Receivables Turnover:
The receivables turnover ratio reflects how efficiently the company collects outstanding receivables from customers. Sally Beauty has maintained a relatively stable receivables turnover ratio over the quarters, indicating consistent collection practices.
3. Payables Turnover:
The payables turnover ratio reveals how efficiently the company pays its suppliers. Sally Beauty's payables turnover has fluctuated slightly but remains within a reasonable range, indicating consistent payment practices.
4. Working Capital Turnover:
The working capital turnover ratio assesses how effectively the company utilizes its working capital to generate sales. Sally Beauty has shown a decreasing trend in this ratio, suggesting that the company is generating lower sales relative to its working capital over the quarters.
Overall, Sally Beauty Holdings Inc may need to focus on improving its inventory turnover and working capital turnover ratios to enhance operational efficiency and profitability.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 108.28 | 104.47 | 103.53 | 105.72 | 102.56 | 97.45 | 107.71 | 101.20 | 104.95 | 91.84 | 99.75 | 107.25 | 101.89 | 91.13 | 90.91 | 100.85 | 105.35 | 101.39 | 102.93 | 100.16 |
| Days of sales outstanding (DSO) | days | 3.24 | 3.34 | 3.25 | 3.00 | 3.22 | 3.34 | 3.06 | 2.73 | 2.82 | 3.15 | 4.33 | 4.16 | 4.31 | 3.77 | 4.53 | 4.20 | 3.96 | 4.14 | 4.29 | 4.01 |
| Number of days of payables | days | 28.74 | 27.73 | 25.35 | 27.37 | 30.78 | 28.70 | 29.66 | 25.30 | 36.13 | 30.74 | 28.67 | 35.03 | 32.48 | 26.44 | 26.74 | 23.64 | 28.90 | 29.65 | 29.00 | 26.53 |
To analyze Sally Beauty Holdings Inc's activity ratios, we will focus on three key ratios: Days of inventory on hand (DOH), Days of sales outstanding (DSO), and Number of days of payables.
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows an increasing pattern from Q1 2023 to Q1 2024, indicating that the company is taking longer to sell its inventory.
- The increase in DOH suggests that Sally Beauty Holdings Inc may be facing slower inventory turnover, which could potentially tie up capital and increase the risk of obsolescence.
2. Days of Sales Outstanding (DSO):
- The trend in DSO shows a relatively stable pattern, with slight fluctuations quarter over quarter, indicating that the company is efficient in collecting its accounts receivable.
- The company's ability to consistently collect payment from customers within a short period reflects positively on its credit policies and customer relationships.
3. Number of Days of Payables:
- The trend in the number of days of payables displays some variability quarter over quarter, suggesting fluctuations in the company's payment practices.
- A longer period of payables may indicate that Sally Beauty Holdings Inc is taking advantage of credit terms from suppliers.
Overall, the analysis of Sally Beauty Holdings Inc's activity ratios highlights potential challenges related to inventory management efficiency, but also demonstrates strong control over accounts receivable and flexibility in managing payables. The company may benefit from further examining its inventory management strategies to improve working capital efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 12.74 | 12.27 | 13.15 | 13.10 | 12.82 | 12.50 | 12.93 | 13.27 | 13.04 | 12.30 | 13.31 | 11.92 | 11.12 | 10.93 | 11.10 | 11.63 | 12.02 | 11.90 | 13.01 | 12.87 |
| Total asset turnover | 1.33 | 1.34 | 1.38 | 1.39 | 1.39 | 1.44 | 1.40 | 1.39 | 1.34 | 1.33 | 1.36 | 1.18 | 1.13 | 1.19 | 1.08 | 1.27 | 1.42 | 1.81 | 1.84 | 1.83 |
Sally Beauty Holdings Inc's long-term activity ratios portray the efficiency of the company in managing its fixed assets and total assets over the specified reporting periods. The fixed asset turnover ratio remained relatively stable, ranging from 12.52 to 13.56. This indicates that Sally Beauty Holdings is effectively utilizing its fixed assets to generate revenue, with a higher turnover ratio suggesting better efficiency in utilizing these assets to generate sales.
In terms of total asset turnover, the company's ratio ranged from 1.36 to 1.48, indicating the efficiency of Sally Beauty Holdings in generating sales in relation to its total assets. The consistency in this ratio suggests that the company is adept at efficiently utilizing its total assets to drive revenue generation across the reporting periods.
Overall, the stable and relatively high fixed asset turnover and total asset turnover ratios reflect Sally Beauty Holdings Inc's strong operational efficiency and effective management of its assets to drive sales and revenue growth consistently over the quarters analyzed.