Simply Good Foods Co (SMPL)

Payables turnover

		Aug 31, 2024	May 25, 2024	Feb 24, 2024	Nov 25, 2023	Aug 26, 2023	May 27, 2023	Feb 25, 2023	Nov 26, 2022	Aug 27, 2022	May 28, 2022	Feb 26, 2022	Nov 27, 2021	Aug 28, 2021	May 29, 2021	Feb 27, 2021	Nov 28, 2020	Aug 29, 2020	May 30, 2020	Feb 29, 2020	Nov 30, 2019
Cost of revenue (ttm)	US$ in thousands	819,755	813,155	807,759	797,722	789,877	759,955	754,692	755,448	730,187	721,829	684,053	630,752	599,588	755,854	654,781	594,954	492,313	438,140	394,476	326,914
Payables	US$ in thousands	58,559	56,504	55,601	43,249	52,712	45,867	59,400	55,249	62,149	64,729	65,209	44,811	59,713	46,788	43,585	41,409	32,240	29,301	38,018	34,413
Payables turnover		14.00	14.39	14.53	18.44	14.98	16.57	12.71	13.67	11.75	11.15	10.49	14.08	10.04	16.15	15.02	14.37	15.27	14.95	10.38	9.50

August 31, 2024 calculation

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

Simply Good Foods Co's payables turnover ratio has shown fluctuation over the past few periods. The payables turnover ratio measures how efficiently the company is managing its accounts payable by comparing the cost of goods sold to its average accounts payable balance. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.

In this case, Simply Good Foods Co's payables turnover ratio ranged from a low of 9.50 to a high of 18.44 over the past few periods. The company generally maintained a healthy payables turnover ratio above 10, with some periods showing ratios closer to 14-16.

The variation in the payables turnover ratio could be attributed to changes in the company's payment terms with suppliers, fluctuations in the cost of goods sold, and changes in internal processes related to accounts payable management. Overall, the trend in the payables turnover ratio suggests that Simply Good Foods Co has been effectively managing its accounts payable during the periods analyzed.