Simply Good Foods Co (SMPL)

Working capital 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
Total current assets	US$ in thousands	440,280	371,652	351,601	298,666	260,263
Total current liabilities	US$ in thousands	108,615	89,857	102,248	113,664	71,478
Working capital turnover		4.01	4.41	4.69	5.44	4.33

August 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,331,320K ÷ ($440,280K – $108,615K)
= 4.01

Simply Good Foods Co's working capital turnover has shown a declining trend over the past five years, decreasing from 5.44 in 2021 to 4.01 in 2024. This indicates that the company is becoming less efficient in using its working capital to generate revenue. A lower working capital turnover may suggest that the company is struggling to efficiently manage its cash flow and inventory levels relative to its sales. Further analysis is needed to understand the underlying reasons for this declining trend and to identify potential areas for improvement in working capital management.