Simply Good Foods Co (SMPL)

Number of days of payables

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Payables turnover		14.00	14.97	11.64	9.98	15.27
Number of days of payables	days	26.07	24.38	31.37	36.58	23.90

August 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 14.00
= 26.07

Simply Good Foods Co's number of days of payables has shown fluctuations over the past five years. In the most recent fiscal year ending on August 31, 2024, the company took approximately 26.07 days to pay its accounts payable, which is slightly higher compared to the previous year at 24.38 days. In the fiscal year ending on August 27, 2022, the number of days of payables increased to 31.37 days, indicating a longer period taken by the company to settle its payables. However, this metric decreased in the fiscal year ending on August 28, 2021, to 36.58 days before decreasing further in the fiscal year ending on August 29, 2020, to 23.90 days.

Overall, the trend in the number of days of payables suggests some variability in Simply Good Foods Co's payment cycle over the years, with a general oscillation between shorter and longer payment periods. This metric is important as it reflects the efficiency of the company in managing its cash flow and relationships with suppliers.