Simply Good Foods Co (SMPL)

Payables turnover

		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	Aug 31, 2019	May 25, 2019
Cost of revenue (ttm)	US$ in thousands	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	306,075	288,051
Payables	US$ in thousands	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	15,730	17,326
Payables turnover		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	19.46	16.63

February 24, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $807,759K ÷ $55,601K
= 14.53

The payables turnover ratio for Simply Good Foods Co has varied over the past few quarters, ranging from a low of 9.50 to a high of 19.46. This ratio indicates how efficiently the company is managing its accounts payable by evaluating how many times a company pays off its average accounts payable balance in a given period.

A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently, which could be indicative of strong liquidity or good negotiating power with suppliers. On the other hand, a lower ratio may imply that the company is taking longer to pay off its payables, potentially signaling liquidity issues or strained supplier relationships.

It is worth noting that the payables turnover ratio should be interpreted in conjunction with other financial ratios and considerations to provide a more complete picture of Simply Good Foods Co's financial health and operational efficiency.