Simply Good Foods Co (SMPL)

Payables turnover

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019
Cost of revenue	US$ in thousands	789,252	723,117	595,847	492,313	306,075
Payables	US$ in thousands	52,712	62,149	59,713	32,240	15,730
Payables turnover		14.97	11.64	9.98	15.27	19.46

August 26, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $789,252K ÷ $52,712K
= 14.97

The payables turnover ratio measures how efficiently a company is managing its accounts payable. Simply Good Foods Co's payables turnover has fluctuated over the past five years, indicating varying levels of efficiency in managing its trade credit. The ratio was 14.97 in Aug 26, 2023, which suggests the company's payables turnover improved compared to 11.64 in Aug 27, 2022 and 9.98 in Aug 28, 2021. However, the payables turnover was higher in the previous years, with 15.27 in Aug 29, 2020 and 19.45 in Aug 31, 2019, indicating the company was managing its trade credit more efficiently in those periods. Overall, the company's payables turnover has shown fluctuations, and further analysis of the company's payment policies and supplier relationships may be needed to fully understand the trends.