Scotts Miracle-Gro Company (SMG)

Days of Sales Outstanding (DSO) is a crucial metric that assesses a company's efficiency in collecting its accounts receivable. It provides insight into the average number of days it takes for the company to convert its accounts receivable into cash. A lower DSO indicates quicker collection of receivables and better cash flow management.

Looking at Scotts Miracle-Gro Company's DSO over the past five years, there is a noticeable decreasing trend. In 2019, the DSO stood at a relatively high 48.99 days, which has steadily decreased to 31.27 days in 2023. This trend suggests that the company has been improving its accounts receivable collection efficiency, which can be indicative of effective credit and collection policies.

The decreasing DSO trend implies that the company is managing its accounts receivable more effectively, potentially resulting in improved cash flow and liquidity. It also indicates that the company may be maintaining a tighter control over credit terms and is successful in collecting payments from its customers in a more timely manner.

Overall, the declining trend in DSO for Scotts Miracle-Gro Company over the past five years indicates a positive development in their accounts receivable management and potential improvement in their overall financial health.

Peer comparison

Sep 30, 2023