Scotts Miracle-Gro Company (SMG)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 19.61 | 6.71 | 3.71 | 11.32 | 11.08 | 4.87 | 3.46 | 12.03 | 12.73 | 6.01 | 4.53 | 14.95 | 10.00 | 4.74 | 3.99 | 12.85 | 8.57 | 3.79 | 3.37 | 16.34 | |
| DSO | days | 18.62 | 54.42 | 98.37 | 32.24 | 32.93 | 74.93 | 105.61 | 30.34 | 28.68 | 60.76 | 80.56 | 24.42 | 36.49 | 76.92 | 91.56 | 28.40 | 42.59 | 96.32 | 108.44 | 22.34 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 19.61
= 18.62
The Days Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO indicates that a company is collecting payments more quickly, which generally signifies efficient accounts receivable management.
Analyzing Scotts Miracle-Gro Company's DSO over the past several quarters reveals some fluctuations. The DSO ranged from a low of 18.62 days to a high of 108.44 days.
The trend in DSO shows some variability, with significant fluctuations over time. For example, in some quarters, such as Mar 31, 2023, and Mar 31, 2021, the DSO exceeded 90 days, suggesting slower collection of accounts receivable. However, this was followed by lower DSO figures, such as Dec 31, 2022, and Dec 31, 2020, indicating improvements in receivables collection.
This variability in DSO could signal changes in the company's credit policies, customer payment behavior, or the effectiveness of its accounts receivable management processes. Further investigation into the reasons behind these fluctuations would be necessary to assess the overall effectiveness of Scotts Miracle-Gro Company's accounts receivable management strategies.
Peer comparison
Sep 30, 2024