Sally Beauty Holdings Inc (SBH)
Working capital turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,717,033 | 3,623,305 | 3,614,026 | 3,628,215 | 3,653,284 | 3,698,523 | 3,711,659 | 3,701,123 | 3,722,075 | 3,746,879 | 3,820,324 | 3,831,278 | 3,779,726 | 3,767,647 | 3,446,701 | 3,393,635 | 3,444,070 | 3,452,195 | 3,723,594 | 3,796,746 |
| Total current assets | US$ in thousands | 1,305,310 | 1,262,560 | 1,280,320 | 1,262,860 | 1,228,000 | 1,199,400 | 1,209,010 | 1,219,200 | 1,132,400 | 1,243,120 | 1,301,680 | 1,415,530 | 1,383,580 | 1,329,110 | 1,466,450 | 1,545,880 | 1,433,100 | 1,763,340 | 1,449,040 | 1,189,040 |
| Total current liabilities | US$ in thousands | 592,669 | 594,925 | 643,769 | 573,069 | 579,257 | 565,637 | 630,641 | 677,266 | 667,914 | 774,961 | 574,269 | 681,752 | 664,881 | 650,205 | 875,051 | 590,336 | 563,362 | 937,732 | 915,836 | 594,605 |
| Working capital turnover | 5.22 | 5.43 | 5.68 | 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 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,717,033K ÷ ($1,305,310K – $592,669K)
= 5.22
The working capital turnover of Sally Beauty Holdings Inc has fluctuated over the past several quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is generating more revenue from each dollar of working capital.
In the most recent quarter, ending September 30, 2024, the working capital turnover ratio was 5.22. This implies that for every dollar of working capital invested, the company generated $5.22 in sales revenue during the period. The ratio has shown a decreasing trend from the peak of 8.01 in September 2022 to the current level, indicating potential inefficiencies in working capital management or a slowdown in sales relative to the level of working capital.
The highest working capital turnover ratio was observed in December 2022 at 6.83, suggesting a strong efficiency in utilizing working capital to generate sales. On the other hand, the lowest ratio of 3.55 in December 2020 indicates a lower efficiency in this aspect compared to other periods.
Overall, it is essential for Sally Beauty Holdings Inc to closely monitor its working capital turnover ratio to ensure optimal utilization of resources and maximize sales generation efficiency.
Peer comparison
Sep 30, 2024