Simply Good Foods Co (SMPL)

Receivables turnover

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Revenue	US$ in thousands	1,331,320	1,242,670	1,168,680	1,005,610	816,641
Receivables	US$ in thousands	150,721	145,078	132,667	111,456	89,740
Receivables turnover		8.83	8.57	8.81	9.02	9.10

August 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,331,320K ÷ $150,721K
= 8.83

The receivables turnover ratio for Simply Good Foods Co has been relatively stable over the past five years, ranging from 8.57 to 9.10. This indicates the company's ability to efficiently collect payments from its customers within a certain period. A higher turnover ratio suggests that the company is collecting receivables more quickly, which is generally seen as a positive indicator of effective credit management and liquidity. In this case, Simply Good Foods Co's receivables turnover ratio has consistently remained above 8, reflecting strong performance in collecting receivables in a timely manner. Overall, the company's ability to efficiently convert accounts receivable into cash indicates a healthy financial position and effective management of its credit policies.