Simply Good Foods Co (SMPL)

Receivables 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
Revenue (ttm)	US$ in thousands	1,239,906	1,221,199	1,212,260	1,167,626	1,162,029	1,166,378	1,146,988	1,130,420	1,094,438	1,025,803	974,051	944,406	883,763	887,277	816,641	733,539	657,906	554,605	523,758	492,836
Receivables	US$ in thousands	147,513	135,561	145,078	145,430	148,250	158,883	132,667	146,377	118,212	125,195	111,456	118,373	97,329	97,887	89,740	64,440	89,966	69,593	44,240	42,809
Receivables turnover		8.41	9.01	8.36	8.03	7.84	7.34	8.65	7.72	9.26	8.19	8.74	7.98	9.08	9.06	9.10	11.38	7.31	7.97	11.84	11.51

February 24, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,239,906K ÷ $147,513K
= 8.41

The receivables turnover for Simply Good Foods Co has shown some fluctuations over the periods analyzed, ranging from 7.31 to 11.84. On average, the company collected its accounts receivable approximately 8.71 times a year. A higher receivables turnover indicates that the company is efficient in collecting outstanding customer payments, which is a positive sign for its liquidity and cash flow management. However, it's important to note that a significantly high receivables turnover could also suggest very strict credit policies that might affect sales volume. Overall, a stable and optimal receivables turnover ratio is crucial for maintaining a healthy balance between sales and cash flow for Simply Good Foods Co.