Scotts Miracle-Gro Company (SMG)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,371,900 | 3,804,700 | 4,835,700 | 4,051,100 | 3,315,200 |
| Property, plant and equipment | US$ in thousands | 610,300 | 606,000 | 622,200 | 560,000 | 546,000 |
| Fixed asset turnover | 5.52 | 6.28 | 7.77 | 7.23 | 6.07 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,371,900K ÷ $610,300K
= 5.52
The fixed asset turnover ratio measures the efficiency of a company's use of its fixed assets to generate sales. A higher ratio implies better utilization of fixed assets.
Scotts Miracle-Gro Company's fixed asset turnover has shown fluctuations over the past five years. In 2023, the ratio decreased to 5.82 from 6.48 in 2022. Despite the decrease, the company still generated $5.82 in sales for every $1 of fixed assets, indicating efficient use of its assets.
Comparing to prior years, the ratio was highest in 2021 at 7.92, signaling a peak in the efficiency of asset utilization. This was followed by a slight decrease in 2022 and a more noticeable decrease in 2023.
Overall, the company has historically maintained a relatively high fixed asset turnover, although some fluctuations have been observed in recent years. It is important for the company to continue monitoring and optimizing its use of fixed assets to ensure sustainable efficiency going forward.
Peer comparison
Sep 30, 2023