Sally Beauty Holdings Inc (SBH)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,652,760 | 3,705,580 | 3,777,230 | 3,415,500 | 3,779,150 |
| Receivables | US$ in thousands | 33,421 | 34,102 | 32,623 | 35,590 | 43,136 |
| Receivables turnover | 109.30 | 108.66 | 115.78 | 95.97 | 87.61 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,652,760K ÷ $33,421K
= 109.30
The receivables turnover ratio measures a company's ability to efficiently collect payments from its customers. A higher ratio indicates more effective management of accounts receivable.
Over the past five years, Sally Beauty Holdings Inc's receivables turnover ratio has shown a declining trend, decreasing from 62.28 in 2019 to 49.14 in 2023. This suggests that the company's efficiency in collecting payments from customers has decreased over this period.
The declining trend may indicate potential challenges in managing accounts receivable, such as a slower collection process or an increase in credit sales. It's essential for the company to assess its credit policies and collection procedures to improve its receivables turnover and ensure timely receipt of payments.
Peer comparison
Sep 30, 2023