Simply Good Foods Co (SMPL)

Payables turnover

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Cost of revenue	US$ in thousands	819,755	789,252	723,117	595,847	492,313
Payables	US$ in thousands	58,559	52,712	62,149	59,713	32,240
Payables turnover		14.00	14.97	11.64	9.98	15.27

August 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $819,755K ÷ $58,559K
= 14.00

The payables turnover for Simply Good Foods Co has been relatively stable over the past five years, ranging from 9.98 to 15.27. The higher the payables turnover ratio, the shorter the time it takes for a company to pay its suppliers. In this case, the company's payables turnover ratio has shown a consistent ability to manage its accounts payable efficiently.

A payables turnover ratio of 14.00 in 2024 indicates that Simply Good Foods Co is able to pay off its suppliers approximately 14 times during the year. This suggests that the company is effectively managing its accounts payable and maintaining good relationships with its suppliers.

Comparing the current payables turnover to the previous years, it is evident that the company has been able to maintain a relatively high level of efficiency in managing its payables. This consistency demonstrates a stable and effective accounts payable management process within Simply Good Foods Co.