Sally Beauty Holdings Inc (SBH)
Working capital 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 |
| Total current assets | US$ in thousands | 1,228,000 | 1,132,400 | 1,383,580 | 1,433,100 | 1,163,550 |
| Total current liabilities | US$ in thousands | 579,257 | 667,914 | 664,881 | 563,362 | 456,079 |
| Working capital turnover | 5.63 | 7.98 | 5.26 | 3.93 | 5.34 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,652,760K ÷ ($1,228,000K – $579,257K)
= 5.63
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. Sally Beauty Holdings Inc's working capital turnover has fluctuated over the past five years, with a peak of 8.21 in 2022 and a low of 4.04 in 2020.
The high ratio in 2022 indicates that the company was able to generate $8.21 in sales for every dollar of working capital, suggesting effective management of its short-term assets and liabilities to support sales growth. However, the significant decrease in 2020 may indicate inefficiencies in working capital management that year.
The 2023 ratio of 5.75 suggests a moderate improvement compared to the previous year, indicating that the company continued to effectively use its working capital to support sales. Overall, the trend in working capital turnover demonstrates fluctuations in the efficiency of utilizing working capital over the years.
Peer comparison
Sep 30, 2023