Simply Good Foods Co (SMPL)

Receivables turnover

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019
Revenue	US$ in thousands	1,242,670	1,168,680	1,005,610	816,641	523,383
Receivables	US$ in thousands	145,078	132,667	111,456	89,740	44,240
Receivables turnover		8.57	8.81	9.02	9.10	11.83

August 26, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,242,670K ÷ $145,078K
= 8.57

The receivables turnover of Simply Good Foods Co has exhibited a declining trend over the past five years, indicating a longer time taken to collect its accounts receivable. In particular, the turnover ratio decreased from 11.83 in 2019 to 8.57 in 2023. This suggests a potential issue with the company's credit and collection policies or a decrease in the efficiency of its accounts receivable management. Further analysis of the company's credit policies and collection procedures is recommended to understand the reasons behind the declining receivables turnover.