Scotts Miracle-Gro Company (SMG)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,303,900 | 3,420,200 | 3,544,400 | 3,627,900 | 3,746,500 | 3,804,800 | 4,053,200 | 4,485,900 | 4,645,300 | 4,835,600 | 5,020,100 | 4,904,700 | 4,455,300 | 4,068,600 | 3,676,000 | 3,348,000 | 3,148,900 | 3,076,000 | 3,012,200 | 2,839,200 |
| Property, plant and equipment | US$ in thousands | 610,400 | 610,300 | 590,300 | 588,900 | 592,800 | 606,000 | 625,200 | 621,000 | 615,800 | 622,200 | 582,600 | 565,300 | 560,900 | 560,000 | 533,200 | 535,400 | 545,400 | 546,000 | 506,700 | 513,900 |
| Fixed asset turnover | 5.41 | 5.60 | 6.00 | 6.16 | 6.32 | 6.28 | 6.48 | 7.22 | 7.54 | 7.77 | 8.62 | 8.68 | 7.94 | 7.27 | 6.89 | 6.25 | 5.77 | 5.63 | 5.94 | 5.52 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,303,900K ÷ $610,400K
= 5.41
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that a company is utilizing its fixed assets effectively to generate sales.
Analyzing the fixed asset turnover trend for Scotts Miracle-Gro Company over the given periods, we observe a generally increasing trend from December 2019 to December 2023. The ratio has shown a positive growth trajectory, starting at 5.52 in December 2019 and peaking at 8.68 in March 2021.
The company's fixed asset turnover ratio fluctuated slightly in the subsequent periods but generally remained at relatively high levels, indicating consistent efficiency in utilizing its fixed assets to generate revenue. Notably, the ratio stood above 6 for most of the periods, signifying a strong performance in capital utilization.
Overall, the upward trend in Scotts Miracle-Gro Company's fixed asset turnover ratio reflects increasing efficiency in generating sales with its fixed asset base. This trend suggests effective management of fixed assets to drive revenue growth and operational performance over the analyzed periods.
Peer comparison
Dec 31, 2023