Simply Good Foods Co (SMPL)

Working capital 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
Total current assets	US$ in thousands	435,842	396,539	371,652	349,810	359,643	357,300	351,601	366,724	335,989	287,637	298,666	309,621	289,134	278,953	260,263	281,140	235,634	252,640	357,607	339,189
Total current liabilities	US$ in thousands	103,661	78,989	89,857	71,275	80,403	80,914	102,248	120,287	107,655	80,765	113,664	97,960	80,560	75,376	71,478	87,770	74,289	94,731	48,032	39,300
Working capital turnover		3.73	3.85	4.30	4.19	4.16	4.22	4.60	4.59	4.79	4.96	5.27	4.46	4.24	4.36	4.33	3.79	4.08	3.51	1.69	1.64

February 24, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,239,906K ÷ ($435,842K – $103,661K)
= 3.73

The working capital turnover of Simply Good Foods Co has exhibited fluctuations over the past several periods. The ratio has ranged from a low of 1.64 to a high of 5.27, indicating variability in the efficiency with which the company is utilizing its working capital to generate sales revenue.

On average, the company's working capital turnover has been relatively healthy, with an average ratio of approximately 4.16. This suggests that, on average, Simply Good Foods Co is able to generate sales revenue approximately 4.16 times for every dollar of working capital invested.

A higher working capital turnover ratio generally indicates better efficiency in terms of managing working capital and generating sales. Therefore, periods with ratios above the average, such as 4.30 and 4.46, indicate that the company was able to generate sales more efficiently using its working capital during those periods.

Conversely, periods with ratios below the average, such as 1.64 and 1.69, suggest that the company may have been less efficient in utilizing its working capital to drive sales revenue during those particular periods.

Overall, the trend in the working capital turnover ratio, while exhibiting fluctuations, indicates that Simply Good Foods Co has generally been effective in managing and utilizing its working capital to support its sales activities.