Smart Global Holdings Inc (SGH)

Number of days of payables

		Mar 1, 2024	Dec 1, 2023	Aug 25, 2023	May 26, 2023	Feb 24, 2023	Nov 25, 2022	Aug 26, 2022	May 27, 2022	Feb 25, 2022	Nov 26, 2021	Aug 27, 2021	May 28, 2021	Feb 26, 2021	Nov 27, 2020	May 29, 2020	Feb 28, 2020	Nov 29, 2019	Aug 30, 2019	May 31, 2019	Mar 1, 2019
Payables turnover		6.17	5.75	9.03	9.44	9.88	5.04	5.49	3.17	3.19	2.95	2.27	3.48	4.13	4.45	4.18	4.53	4.47	6.57	6.46	4.69
Number of days of payables	days	59.13	63.52	40.43	38.68	36.93	72.47	66.47	115.26	114.46	123.67	160.65	104.75	88.45	82.04	87.42	80.60	81.61	55.55	56.48	77.77

March 1, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.17
= 59.13

The number of days of payables for Smart Global Holdings Inc has exhibited some fluctuations over the past few years. From the data provided, the trend indicates variability in the company's payment cycle.

On average, Smart Global Holdings Inc takes approximately 80 to 90 days to pay its suppliers. There are instances where the number of days of payables was as high as 160 days, indicating a longer payment cycle, and other times it was as low as around 36 to 40 days, suggesting a relatively shorter payment cycle.

It is important for the company to closely monitor and manage its payables to ensure optimal cash flow and good relationships with suppliers. The company may have strategic reasons for varying its payment terms based on its cash flow position, supplier relationships, and overall financial strategy. Further analysis of the underlying reasons for these fluctuations would provide more insight into the company's financial management practices.