Scotts Miracle-Gro Company (SMG)

Days of inventory on hand (DOH)

Sep 30, 2024 Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020
Inventory turnover 5.65 4.13 3.20 3.79 5.82
DOH days 64.57 88.45 113.98 96.24 62.67

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.65
= 64.57

The days of inventory on hand (DOH) for Scotts Miracle-Gro Company has shown fluctuating trends over the past five years. The company's ability to manage its inventory efficiently is reflected in the number of days it takes to sell off its inventory.

From 2020 to 2022, there was a significant increase in DOH, indicating that the company was holding inventory for a longer period before selling it. This could be due to various factors such as changes in demand, production issues, or ineffective inventory management practices.

However, in 2023 and 2024, there was a notable decrease in DOH, suggesting that the company may have improved its inventory management practices and is now able to sell off its inventory more quickly. A lower DOH is generally favorable as it indicates that the company is able to minimize holding costs and the risk of inventory obsolescence.

Overall, Scotts Miracle-Gro Company should continue to monitor its DOH and strive to strike a balance between having enough inventory to meet demand while minimizing excess holding costs. Engaging in effective inventory management practices can help improve the company's liquidity, profitability, and overall financial performance.


Peer comparison

Sep 30, 2024

Company name
Symbol
DOH
Scotts Miracle-Gro Company
SMG
64.57
CF Industries Holdings Inc
CF
26.71
The Mosaic Company
MOS
80.19