Scotts Miracle-Gro Company (SMG)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.95 | 4.02 | 3.86 | 3.62 | 2.79 | 3.20 | 3.15 | 2.55 | 2.52 | 3.79 | 4.55 | 4.19 | 3.65 | 5.82 | 6.67 | 4.05 | 3.32 | 5.24 | 5.34 | 4.05 | |
| DOH | days | 123.88 | 90.70 | 94.56 | 100.76 | 130.84 | 113.97 | 115.83 | 143.08 | 145.06 | 96.24 | 80.22 | 87.16 | 99.98 | 62.67 | 54.70 | 90.22 | 109.87 | 69.72 | 68.35 | 90.10 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.95
= 123.88
The Days of Inventory on Hand (DOH) ratio for Scotts Miracle-Gro Company has fluctuated over the past few years, indicating varying efficiency in managing inventory levels.
For the most recent period ending December 31, 2023, the company held inventory for approximately 123.88 days, which was higher compared to the previous quarter. This suggests that Scotts Miracle-Gro Company may be facing challenges in efficiently turning over its inventory.
Historically, the DOH ratio has displayed some volatility, with peaks observed in some quarters, like March 31, 2022, and December 31, 2022, reaching 145.06 days and 130.84 days, respectively. This implies that during those periods, the company may have faced issues such as overstocking or slowing sales, leading to the accumulation of inventory.
Conversely, lower DOH ratios, such as those seen on June 30, 2020 (54.70 days) and December 31, 2020 (62.67 days), indicate efficient inventory management and a quicker turnover of goods.
Overall, Scotts Miracle-Gro Company should aim to closely monitor its inventory levels and strive for a balance to optimize cash flow and reduce holding costs, ensuring that inventory turnover remains at a satisfactory level.
Peer comparison
Dec 31, 2023