Sally Beauty Holdings Inc (SBH)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,713,300 | 3,652,760 | 3,705,580 | 3,777,230 | 3,415,500 |
| Total current assets | US$ in thousands | 1,305,310 | 1,228,000 | 1,132,400 | 1,383,580 | 1,433,100 |
| Total current liabilities | US$ in thousands | 592,669 | 579,257 | 667,914 | 664,881 | 563,362 |
| Working capital turnover | 5.21 | 5.63 | 7.98 | 5.26 | 3.93 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,713,300K ÷ ($1,305,310K – $592,669K)
= 5.21
Sally Beauty Holdings Inc's working capital turnover has exhibited fluctuations over the past five years. In 2022, the company achieved its highest working capital turnover ratio of 7.98, indicating that it generated $7.98 in sales for every dollar of working capital invested. This signifies efficient management of working capital and suggests that the company was able to efficiently utilize its current assets to generate sales.
However, in 2023 and 2024, the working capital turnover ratio decreased to 5.63 and 5.21, respectively. While these ratios are still relatively high, they indicate a slight decline in efficiency in utilizing working capital to generate revenue compared to the previous year.
Compared to 2020 and 2021, Sally Beauty Holdings Inc has shown significant improvement in its working capital turnover, as the ratio has increased from 3.93 to 5.21 in 2024. This signifies that the company has improved its ability to generate sales using its working capital efficiently over the years.
Overall, Sally Beauty Holdings Inc has generally maintained a strong working capital turnover ratio, reflecting efficient management of working capital to drive sales. However, the recent slight decline in the ratio warrants further monitoring to ensure optimal utilization of current assets in generating revenue.
Peer comparison
Sep 30, 2024